Economic growth has recently strengthened around the world, which has coincided with concerns over the prospect of higher inflation. Despite these concerns, economic data indicates that inflation remains stable near the Fed’s 2% target. We continue to believe investors should maintain long-term inflation protection in portfolios rather than reacting to shorter-term market narratives. Some highlights from our 2018 Real Assets Outlook include:
- As expected, oil prices and industrial metals saw a strong price rebound as supply issues worked their way through the market. There may be greater upside risk for oil and certain metals and minerals in the near-term.
- Higher interest rates are putting pressure on more income-oriented investments, such as core infrastructure.
- Amidst the sell-off in energy, an interesting opportunity has emerged in publicly-traded midstream energy companies (MLPs).
We look forward to discussing this research with you.
