Inflation has been minimized for a long time, but that could be about to change
SCOTTSDALE, Ariz. - Oct. 25, 2022 - PRLog -- Trajan Wealth and Matt Coffina, their portfolio manager for Expanding Moat and Defensive Moat strategies, released a new blog post that discusses investment strategies during a time of inflation, and the risks involved with trying to predict the future path of the economy.
By looking through past trends in times of inflation, Matt discusses the surrounding topics that can lead to inflation. He also discusses how to hedge and non-hedge your investments when preparing for a rise in inflation.
"As for liquid assets, short-term bonds, Treasury Inflation-Protected Securities, and I-bonds can all provide some degree of inflation protection. Short-term bonds can be rolled into higher-yielding securities when they mature, while TIPS and I-bonds adjust their coupon payments for inflation."
Matt also discusses stocks and the conventional wisdom that they are poor inflation hedges. He breaks down the justified price/earnings formula, which is an abbreviated cash flow model. He also discusses the different aspects of the formula, (earnings, free cashflow/earnings, cost of equity, and growth) to make sure it's crystal clear.
He also gives the examples of Visa and Mastercard as possible investment targets due to their performance in this formula. These companies have advantages in their business structure that makes them attractive options in an inflation-driven market.
When you're looking to make investments, a strong analytical eye is important, and using the proven formulas can help separate companies that tend to perform well in a given economy. When dealing with the current market and the risks that come with it, make sure you're aware of the investments that are best equipped to succeed during inflation.
About Trajan Wealth:
Trajan Wealth LLC formed in 2012, was founded by CEO Jeff Junior. Prior to his 20+ years in the financial services profession, Jeff Junior was a member of the United States Marine Corps. Jeff continues to serve his clients and employees with the utmost service, respect, and attention to detail.
By using low-cost diversified portfolios under its fiduciary standard, the company provides long-term support for its clients' retirement needs as well as their estate plans. This includes strategies for wealth accumulation and tax planning.
For more information on all the different services offered or to schedule a complimentary consultation, visit https://trajanwealth.com or call 1-800-838-3079.
*Advisory services through Trajan® Wealth L.L.C., an SEC Registered Investment Advisor. Estate planning services are offered through Trajan® Estate, LLC in Arizona and Utah. Estate planning services are offered through Estate Lawyers, PLLC, in other States.
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