To Address Inflation, Consider Four Portfolio Adjustments

Thanks to changing demographics and disruptions in the supply chain because of climate change, inflation could be an ongoing issue.

An older couple smile as they look over their investments together on a laptop on a kitchen island.
(Image credit: Getty Images)

Inflation that reached four-decade highs in 2022 contributed to bear markets in stocks and bonds. Although inflation is slowing and markets have rebounded in 2023, demographics and climate change are among the factors likely to prevent inflation from staying consistently in check. Consequently, the portfolio strategies that worked well during recent decades in which inflation was well contained may require adjustment for an environment that features more persistent periods of above-target inflation.

Changing demographics play a role in inflation

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Daniel Kern, CFA®, CFP®
Chief Investment Officer, Nixon Peabody Trust Company

Daniel S. Kern, CFA®, CFP®, chief investment officer of Nixon Peabody Trust Company, is responsible for overseeing the firm’s investment process, research activities and portfolio strategy. He previously was the managing director and chief investment officer of TFC Financial Management. Earlier in his career, Dan was head of asset allocation at Charles Schwab Investment Management and managed global and international equity portfolios for Montgomery Asset Management. He is a contributor to and and a regular guest on Bloomberg’s Baystate Business and TD Ameritrade Network.