Inflation protection – Hope for the best, but build robust portfolios

Mercer/Staff/November2021

photo of stacks of gold and silver coins

“The scenario few portfolios would be well-positioned for is pandemic stagflation. Returns generated in this scenario by long-term assets like real assets or natural resource equities would be heavily dependent on the extent to which market fears of inflation translate into higher discount rates and lower valuations. We expect commodity-related strategies or gold to provide more reliable protection.”

USAGOLD note: Mercer tells its clients that for the first time in a generation investors now need to factor inflation into their portfolio decisions, i.e., the changing paradigm. This detailed report from Mercer, a division of Marsh McLennan, concludes that “gold may prove to be a valuable addition to portfolios.”

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