The US CPI surges to highest since 1982! How to hedge?
The Federal Reserve is closely watching the data and a two-day meeting will be opened next week. Fed officials said they would begin to slow the help they have provided to tame inflation.
Investors expect the Fed to double the pace of asset reduction to $30bn a month, possibly starting in January. That would allow the Fed to start raising interest rates as early as next spring.
To hedge against inflation, top Wall Street banks offer their own advice:
BlackRock macro strategists recommend hedging with a multi-asset strategy that included small-cap stocks, value stocks, bank stocks, inflation-linked bonds and diversified commodities.
Jp Morgan advises investors to take advantage of declines in cyclical stocks, commodities and reopening beneficiaries, and to prepare for higher bond yields and steepening of the curve.
Energy, financials and health care could be winners, According to Bank of America; Conversely, consumer discretionary, consumer staples and communications services are expected to underperform.
Investors expect the Fed to double the pace of asset reduction to $30bn a month, possibly starting in January. That would allow the Fed to start raising interest rates as early as next spring.
To hedge against inflation, top Wall Street banks offer their own advice:
BlackRock macro strategists recommend hedging with a multi-asset strategy that included small-cap stocks, value stocks, bank stocks, inflation-linked bonds and diversified commodities.
Jp Morgan advises investors to take advantage of declines in cyclical stocks, commodities and reopening beneficiaries, and to prepare for higher bond yields and steepening of the curve.
Energy, financials and health care could be winners, According to Bank of America; Conversely, consumer discretionary, consumer staples and communications services are expected to underperform.
Citi bank says sectors with the highest historically negative correlation with inflation include consumer and food stocks, health care, information technology and communications services.
$Wells Fargo & Co(WFC.US$ $Bank of America(BAC.US$ $Apple(AAPL.US$ $Coca-Cola(KO.US$ $SPDR Gold ETF(GLD.US$ $Amazon(AMZN.US$ $Blackrock(BLK.US$ $Cooper Companies(COO.US$ $S&P 500 Index(.SPX.US$ $Dow Jones Industrial Average(.DJI.US$
$Wells Fargo & Co(WFC.US$ $Bank of America(BAC.US$ $Apple(AAPL.US$ $Coca-Cola(KO.US$ $SPDR Gold ETF(GLD.US$ $Amazon(AMZN.US$ $Blackrock(BLK.US$ $Cooper Companies(COO.US$ $S&P 500 Index(.SPX.US$ $Dow Jones Industrial Average(.DJI.US$
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