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Hennion & Walsh Asset Management Kevin Mahn on how to adjust your portfolio to protect against the risks from inflation.
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-- this morning's data show that consumer prices in February.
Rose the most we've seen in ten months now this comes on the heels of yesterday's report showing a wholesale prices.
-- surprise pop so is inflation finally here and if so how can you prepare Kevin -- is that president chief investment officer at.
-- and Walsh and he joins us now good to see Kevin thanks for -- and appreciate so.
The full impact of inflation is has is -- be -- of course the Fed continues to say that we don't really have inflation if they they admitted a little bit -- it.
In their last report that they say the other things like like the -- intact.
Balances out the high prices food and gas but people feel what and and a lot of the cost of inflation have been hidden for the past couple -- Yeah I mean if you just focus on core CPI trips up -- more volatile food and energy prices well guess what.
Unfortunately the every -- American can strip out those vital components from their everyday lives are passed on to other items as well down the food chain and so is absolutely.
So as food prices go up soybeans are up double digits this year sugar prices are up double digits -- your live look at energy.
Oil prices up double digits -- your gasoline home heating oil that's starts to impact the -- of every day consumers what happens.
Consumer sentiment goes down as we saw this morning and people start to spend less it's a vicious cycle because 70% of our domestic.
Growth comes from consumer spending.
Well -- separate from the Fed.
Sort of exiting from all of the liquidity of everything that they've been doing to try and prop up the markets what else can be done about these rising prices of most of it of course goes to gasoline and there's always that core rate which.
When you strip that out inflation rose less than expected.
Right I think.
Inflation's been anxiously waiting in the wings now for about two and a half years and it's here so investors would be forced to wait to inflation proof their portfolios.
Down the road when the Fed finally admits that inflation is here so invest into -- how there are many different ETF comedians today that allies into investing commodities.
But I don't recommend individual investor trying time the commodities market or -- or not they should be in soybeans or sugar.
Because there -- commodity baskets that are now available to investors to invest and if they have a certain.
View on the market are certain view on commodities in general.
But commodities have already had a tremendous.
-- I mean we're just looking at some of the profits here but.
Even countries that focus on much like Australia for a number of people are now beginning to short.
The Australian dollar because they say.
The commodities have already had those pops worked into let's just -- what makes commodity prices go up it's a supply demand equation.
As the world by population continues to grow.
That basic demand for natural resources food energy increases but analysts are these recent and it's also fed issue as well the company is that the Fed has has done most of its money -- already know yes.
But the demand for those basic commodities -- children exists so whether gonna ask me should I invest in commodities today or next week.
I don't know should you be in commodities for the next three to five years without ago.
We'll -- pinpoint -- here because David and I understand that -- obviously food is expensive now we've got would you pick those ETFs those baskets of exchange traded funds that -- focus on the soft commodities where you would get a basket of maybe some of the fertilizer companies but also the actual corn wheat soy.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- PP he's a basket of energy related commodities DPP precious metals and if you just -- -- more broader based commodity investment you can look at -- -- period.
Inflation proofing your portfolio good advice Kevin month thank you very much for I mean I -- preceded noble put your picks on the -- okay.
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