Brian Levitt, Global Market Strategist, Kathy Kriskey, Product Strategist, Commodities and Alternatives and Taylor Watts, Senior Client Portfolio Manager at Invesco discuss portfolio allocation strategies for a rising rate and inflationary environment.
2021 was a strong year for real assets. Energy, industrial metals and agriculture sectors especially benefited from a rebounding economy and strong consumer demand. In 2022, persistent inflation, supply chain strains, energy transition themes and an easing pandemic point to long-term favorable conditions for commodities and real assets. Historically, real assets have offered a hedge against inflation risk, diversification, and enhanced returns. Watts also discusses the current rising rate environment and points to the senior loan sector as a potential solution. U.S. secured senior loans have performed well in past rising rate environments and offer substantially higher yield potential than many of its fixed income peers.
To learn more, register and watch Invesco’s webcast: Positioning Portfolios for Fed Tightening and the Risk of Persistent Inflation.
Inflationary pressures are proving to be less transitory than once hoped. Now the question is, how aggressive will the Federal Reserve be in combating inflation? In December, the Fed surprised investors with a distinctly hawkish stance, and January ushered in dramatic volatility as investors became anxious about rate hikes. In this session we will explore what this means for your clients’ portfolios and highlight two strategies to consider right now: senior loans and real assets.