In this episode of The Australian Investors Podcast analyst Owen Rask and Wattle Partners financial adviser Drew Meredith, CFP walk you through what it takes to build an inflation-resistant portfolio.
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Show notes
In this episode, Owen puts some hard questions to Drew about how he manages diversified portfolios for clients at Wattle Partners.
The list of questions and talking points include:
- How are you dealing with inflation in client portfolios?
- How has your portfolio positioning changed between 2021 and 2022?
- Do you get worried by sell-offs, and how do you prepare for that?
- Instead of bonds, what are three things in your “defensive alternatives” bucket right now?
- With inflation rising, how can investors get protection? See below.
Here are Drew’s notes on his answer to question number-five:
- There is no perfect protection
- The threat is you put too much capital into one outcome and miss out on the alternatives
- Rules remain pretty simple
- Avoid junk, small, micro, non-profitable companies
- Stick with capital
- Remain diversified into multiple asset classes
- Have some hedges like
- Gold, silver
- Inflation-linked bonds
- Floating rate securities
- For shares:
- Buy cheaper, but quality companies
- Invest in companies exposed to key themes that are still occurring, regardless of inflation
Date of recording: January 25nd, 2022
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