2021 Investment Outlook: Inflation

“What is inflation?” is becoming a common question with a complex answer. Complicating it further is the fact that the most commonly known measure of inflation, the Consumer Price Index (CPI), isn’t all that helpful in understanding how inflation impacts a particular individual or sector.

In the premiere episode of our new multi-part “2021 Investment Outlook” video series, Omnia Family Wealth’s Michael Wagner and Alon Ozer sit down for a conversation about the sources of inflation, its potential impacts and how you can begin to hedge against this threat.

Specifically, Wagner and Ozer discuss:

  • The basic concept of inflation and why it is not as simple as it seems
  • How inflation can be different between individuals
  • Why the CPI is often not the best way to measure inflation
  • The differences between good and bad inflation
  • What hyperinflation is and whether or not it is a concern for the U.S.
  • How inflation and Federal Reserve policies impact portfolio construction
  • Which types of assets can potentially underperform during inflation

During the video, Wagner and Ozer emphasize that it is no longer effective to have the traditional stock and bond portfolio. Instead, you need to have a well-diversified portfolio that can offer stability and protection against volatility, inflation and whatever else may come.

At Omnia, our investment philosophy is centered around controlling what we can control, which includes risk, taxes and fees, to proactively position portfolios for factors we cannot control, like inflation. As always, please do not hesitate to contact us with any questions. We are available via email or phone at (305) 602-9080.

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