How to Protect Your Portfolio From the Looming 'War on Inequality'

Favor real assets over financial ones as the focus shifts to fiscal stimulus, Bank of America Merrill Lynch recommends.

Senator Bernie Sanders, an independent from Vermont and 2016 Democratic presidential candidate, speaks during a campaign event in Pittsburgh, Pennsylvania, U.S.
Photographer: Pete Marovich/Bloomberg *** Local Caption *** Bernie Sanders

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By Sid Verma

August 2, 2016 at 11:12 AM UTC

This article is for subscribers only.

Looser fiscal policy, trade protectionism and wealth redistribution in developed countries represent a game-changer for global investment strategies over the next year.

Investors wishing to protect their financial portfolios would do well to snap up real economy assets — as commodities, collectible items, and real estate — as a fiscal fillip is set to unleash inflationary pressure.

That's the big-picture call from Bank of America Merrill Lynch strategists led by Michael Hartnett.

In a research report published on Friday, the strategists launch a manifesto for a new world order for global asset pricing.