Real Assets May Be the Missing Piece in Portfolios

CPI printed 2.4% while the Fed is holding rates steady, reinforcing a 'higher for longer' policy backdrop and persistent inflation risk. Advisors are pivoting to strategies that can withstand sticky inflation and elevated rates, noting that modern portfolios are broadly underweight real assets (e.g., commodities/infrastructure). Consider increasing allocation to inflation hedges and real assets to protect real returns if elevated CPI persists.

Analysis

CPI printed 2.4% while the Fed is holding rates steady, reinforcing a 'higher for longer' policy backdrop and persistent inflation risk. Advisors are pivoting to strategies that can withstand sticky inflation and elevated rates, noting that modern portfolios are broadly underweight real assets (e.g., commodities/infrastructure). Consider increasing allocation to inflation hedges and real assets to protect real returns if elevated CPI persists.