The asset management division of Credit Suisse has released a new white paper, “Preparing for Inflation – Is it Too Early to Position Your Portfolio?” as part of a new Asset Management Thought Leadership Program. Credit Suisse has said that the paper highlights investment strategies over the next 12 – 36 months to prepare investors’ for the potential threat of future inflation.
Key strategies included in the report are: Commodities: the demand for raw materials and commodities in growing economies will most likely have an upward bias on prices. Gold is a contrary play that does well in realized inflation regimes as well as in depreciating dollar environments; US Treasury Inflation Protected Securities (TIPS): TIPS can create attractive yields but may increase unhedged downside risk if deflation overcomes inflation; and Infrastructure: certain infrastructure projects offer “regular” cash flow streams that feature inflation-linked exposure.
Key strategies included in the report are: Commodities: the demand for raw materials and commodities in growing economies will most likely have an upward bias on prices. Gold is a contrary play that does well in realized inflation regimes as well as in depreciating dollar environments; US Treasury Inflation Protected Securities (TIPS): TIPS can create attractive yields but may increase unhedged downside risk if deflation overcomes inflation; and Infrastructure: certain infrastructure projects offer “regular” cash flow streams that feature inflation-linked exposure.
