Monday, 25 April 2022 07:57

Advisors Moving to Model Income Strategies to Counter Inflation

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The majority of financial advisors have one concern at the top of their priority list: inflation. As rates hit unprecedented levels in the modern Fed era, these numbers look more like the seventies than the 2020s. This has caused a mass exodus and outflows from traditional fixed income products having investors and advisors looking elsewhere to get income. Dividend strategies, commodities, and other alternatives are seeing huge inflows for clients who want to maintain an income position. Some Advisors are getting more intricate and using option overlay strategies to mitigate inflation. Tom Lydon of ETF Trends expects bond ETF outflows to continue as advisors are steering clients away from them.


Finsum: Model portfolios specifically geared toward inflation are a nice alternative for investors at the moment.  

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