Economics
Stagflation Portfolio Luring Managers Who Say Time to Act Is Now
- Threat from higher prices, falling employment, slower growth
- Winners will be sectors with strongest pricing power: Boockvar
This article is for subscribers only.
Most investors have come to terms with inflation, viewing it as evidence of an expanding economy. But not everyone. An increasingly vocal minority is sounding off about their vision of rising costs, falling employment and slow growth, the chilling combination known as stagflation.
Jerry Braakman, for one, isn’t waiting to see how it plays out and is bracing for just such an environment. The chief investment officer of First American Trust has been piling on exposure to real estate investment trusts and technology and offloading financials, which should theoretically be weighed down by a flattening yield curve.