Investment Commentary

Combating Inflation in Your Portfolio

By Jon Henshue | Johnson Financial Group • May 19, 2021

2 minute read time

Last week investors were shocked with the release of the latest inflation figures, as both the consumer and producer price indices far exceeded expectations, reaching levels not seen in at least a decade. Fed officials maintain their view that this phenomenon is only temporary, and while we tend to agree, the lasting impact of an economic shutdown followed by unprecedented global stimulus is unclear. The prospect for sustained inflation remains, bringing with it a corresponding erosion of the purchasing power of a dollar. So, how can investors respond?

Listen in as Johnson Financial Group’s Jon Henshue reviews how diversification in your portfolio can help during inflationary periods.

ABOUT THE AUTHOR

Jon Henshue

VP Director of Alternative Strategies | Johnson Financial Group

In his role as VP Director of Alternative Strategies, Jon is responsible for conducting due diligence and selecting investment managers for use across the JFG platform. Jon’s areas of coverage include complementary investments and US growth equity managers. He leads the Complements Strategy Group, which oversees portfolio construction of complementary asset classes, and also serves as a member of the firm's Investment Committee.

This information is for educational and illustrative purposes only and should not be used or construed as financial advice, an offer to sell, a solicitation, an offer to buy or a recommendation for any security or investment. All information presented is considered accurate at the time of publication but no warranty of accuracy is given and no liability with respect to any error or omission is accepted. Charts and graphs, in and of themselves, should not be used as a basis for investment decisions. Past performance is not a guarantee of future results.

Complementary investments introduce risks that are different from more traditional investments and may require certain investor qualifications. These risks include more speculative strategies that may increase volatility and the risk of investment loss, illiquidity, lack of pricing or valuation information, complex tax structures and delays in distributing important tax information. Additionally, complementary investments often have more complex and higher fee structures than traditional investments. Higher fees reduce investor returns.

Johnson Financial Group is the parent company and brand name for its subsidiaries, Johnson Bank and Johnson Wealth Inc. Additional information about Johnson Wealth Inc., a registered investment adviser, and its investment adviser representatives is available at https://www.adviserinfo.sec.gov/. Johnson Financial Group and its subsidiaries do not provide legal or tax advice.