We appear to be in a new investment era, one of higher inflation and higher interest rates. It is a huge change from the “great moderation,” the multi-decade stretch of low inflation and falling interest rates since the early 1980’s.
With consumer prices soaring to 40-year highs the Federal Reserve has pivoted from its unusual role as inflation promoter to its traditional role of inflation fighter, which signals higher interest rates ahead.
Major macro shifts like these are always turbulent. How to navigate them without damaging your portfolio or psyche is our focus this week. Our guest is well suited to tackle this challenge because of his track record of capital preservation and long-term compounding.
Noted global value manager Matthew McLennan has a proven track record of building lasting wealth by investing in resilient investments, including gold.
WEALTHTRACK Episode #1832 broadcast on Febuary 04, 2022
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- Portfolio Manager
- First Eagle Global Fund
ADD SOME INFLATION BENEFICIARIES TO YOUR PORTFOLIO
- Has held its value over time
- Hedge against disaster
- ETF more accessible than bullion
- SPDR Gold Shares ETF (GLD) is the oldest gold ETF
- Broad-based commodity ETF: iShares S&P GSCI Commodity-Indexed Trust (GSG)
- REAL ESTATE
- Real estate investment trusts or REITS
- Shares in pools of income-producing properties
- Vanguard Real Estate ETF (VNQ) – low-cost exposure to a broad range of REITS
- TREASURY INFLATION-PROTECTED SECURITIES or TIPS
- U.S. Treasury bonds indexed to inflation
- Can buy directly from the U.S. government
- iShares TIPS Bond ETF (TIP)
International industry leaders are cheaper than their U.S. counterparts
- Fanuc Corporation ADR (FANUY)
- Taiwan Semiconductor Manufacturing Co. Ltd. ADR (TSM)
Consumer product leader:
- Unilever PLC ADR (UL)
Matthew McLennan from the WEALTHTRACK Archives:
Global value investor Matt McLennan, a voracious reader, has recommended several serious books to us over the years. His latest one explores another realm.