Chronicles: Issue 15, May 2021

Dear Investment Professional,

Though supply shortages had already caused prices to creep up on products ranging from Buffalo chicken wings1 to mattress foam2, last week’s Consumer Price Index (CPI) report confirmed that inflation in the United States has indeed arrived. Despite the known base effects of the year-on-year comparison, the 4.2% jump reported from last April had many economists stumped3 and investors around the world seeking reliable hedges against future price increases.

In this month’s Chronicles of an Allocator, we’ve brought together recent research and commentary examining a known favorite of inflation-wary investors around the world: real assets. As most readers might expect, not all real assets will hedge equally, and niches with longer-term stories, like private infrastructure that supports the clean energy transition, are expected to produce better results than others.

The CAIA Content Team

John L. Bowman, CFA, Senior Managing Director, TwitterLinkedIn

Keith Black, PhD, CFA, CAIA, FDP, Managing Director Content Strategy, TwitterLinkedIn

Guowei Jack Wu, CFA, CAIA, Content Director, APAC, TwitterLinkedIn

Aaron Filbeck, CFA, CAIA, CIPM, FDP, Director, Global Content Development, TwitterLinkedIn