Inflation Steers Sector Rotation

John Davi, CEO and CIO at Astoria Portfolio Advisors, said that the firm has concentrated its inflation bets and is then hedging that with defensive strategies like dividends, min vol, utilities, and healthcare.

Davi said that what he thinks advisors should be doing from a portfolio construction standpoint is shying away from growth while continuing to buy value, banks, and energy, as well as increasingly using utilities, healthcare, and other defensive equities to hedge the beta in a portfolio.

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Outpace Inflation With These 2 FlexShares ETFs

As consumer prices move higher this year, fixed income investors can brace themselves for any further moves with Treasury-inflation protected securities (TIPS).

First up, TDTT seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the iBoxx 3-Year Target Duration TIPS Index

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QCON Hedges Against Inflation With Convertible Bonds

The consumer price index increased 6.2% in October, the highest it has been since December 1990, and core inflation, minus food and energy prices, surged 4.6% in its most rapid gain since 1991, reports CNBC . Prices across all sectors are soaring, with fuel oil prices growing 12.3%, adding up to a 59.1% increase for the entire year.

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