Bet_Noire
Over the past couple of months, the fears of rising inflation have intensified again. As we transitioned from 2023 into 2024, the base scenario was that we would have several interest rate cuts by the Fed in order to avoid the
2 Tactics For Income Investors To Shield Their Spending Power
Summary
- Rising inflation and yield curve normalization are creating new market risks, making it unlikely for the Fed to cut interest rates soon.
- Duration-heavy asset classes like bonds and REITs will likely remain depressed, posing risks to passive income investors and retirees.
- Inflation erodes spending power, necessitating the inclusion of inflation-protected securities in portfolios to mitigate longevity risk.
- In this article, I elaborate on two tactics how income investors could shield their portfolio distributions from the loss of purchasing power.
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.
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