For the first time in a generation, investment managers need to seriously consider persistent inflation

MarshMcClellan/Mercer Insights/8-24-2022

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“Gold is a special case commodity. Historically, it has done well when fear of inflation is high, specifically inflation driven by monetary expansion, having a high sensitivity to inflation when inflation is on a runaway trajectory.… That gold often comes into its own in higher inflation scenarios is related to its close relationship to currency debasement.”

graphic image of a book and reading glasses A Good Weekend ReadUSAGOLD note: MarshMcClennan is a professional firm that advises wealth managers, private banks and family offices. It says that money managers in the past were geared to a disinflationary climate suited to stock and bond ownership. Now, a sea change has occurred in which investors will be forced to deal with rising inflation “when inflation is already high.” As such, “for the first time in a generation,” a different approach is required – one that includes commodities and gold.

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