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How to Invest Amid Inflation

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  • Description

    Jeff Sica, Sica Wealth Management, on the advice he is giving investors on inflation.

  • Duration 4:10
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Farmed out.

Let's not forget the economy -- -- going gangbusters but could inflation rear its ugly head Jesse got.

President and chief investment officer seek a wealth management is here with.

How to profit in this uncertain environment and Jeff I know -- you manage money for high net worth clients.

And I suppose we wanna know is if you could help us become one of them -- them what is the single best piece of advice to students your clients right now.

On the -- now is it now is a crucial time because we're about to -- the abyss of of mediocrity and and low expectations for earnings.

So there's a lot of there's going to be volatility.

The market is gonna have to determine the direction but.

There's there's always the possibility of even if you're relatively negative on the market to find opportunity.

Because opportunity bull and bear markets could coexist and opportunity.

Is available on every market if you diligently pursue it.

Just today the trade gap widening more than expected.

Goldman Sachs put that in notes in the fourth quarter GDP their forecast -- shaving half a percentage point off a bit too.

Just about one point 3% growth okay lackluster growth mediocrity.

To characterize conditions the way you are.

Where is the bull market obviously BS and.

There's one course theme that makes more sense -- anything to me and that's the theme of inflation the fact that the only way that the government.

The central banks have been able to deal with -- with -- with this economic slowdown.

My -- -- liquidity print print print so -- so that liquidity is is inflating certain asset prices.

And as an investor if invest in those I think prices that will -- First pitch you on inflation your take on inflation is a kind of hit the economy slowly or is it going to to shake things up.

We're -- one misconception about inflation is that people think that inflation is -- -- involve.

This broad based inflation and the inflation can happen.

During an economic slowdown inflation and slow growth could co exist.

So it's gonna happen incrementally.

And it's gonna it's gonna affect certain asset class has more than others.

OK so you're recommending buying gold and precious metals -- pretty big breakdown in the price of gold today would you recommend buying gold right now.

Get gold gold it's been so zeroed in on the Central Bank activity and now to China inflation.

Everybody's worried that China is gonna pull back -- -- -- authority that are stimulus.

I don't believe that's gonna happen and I think gold is going to be one of the more stable that's going.

Tips treasury inflation protected securities you really the first person I'm sure others are with you but who's really zeroing in on inflation planning for -- so you like the treasury.

-- I think people are talking about tips because they're sort of boring the talk about they are treasuries.

They are gauged through -- through and through the levels of inflation.

But they have a significantly better spread then treasuries and they've performed better last year they -- around 7%.

Government leader looking at negative real returns on tips so this is at what's the time from how far out would you recommend -- and.

-- if you -- your of your time for a massive -- between three and five years okay.

On tips but I think we're gonna we're gonna have a good move this year.

And that real estate everybody's talking about stabilization.

Right now in the housing market so when you say investing real estate you mean just buy a house or buy specific investment properties.

What exit home builder stocks -- that in -- me.

Well I have -- hard asset theme in and when it comes to real thing real estate is such a diverse sector.

So a lot of people think that is a broad based sector sort of like you think of the S&P 500.

The fact is there's.

There's things like the housing market I believe single family homes.

Are gonna begin to see appreciation -- because of anything necessarily that the government is done but supply has greatly been reduced demand is still there.

And multifamily apartment things like that that there is going to be a need for housing there's that there's -- supply demand function that's working well.

And those options are gonna appreciate -- begin to appreciate even more as supply continues to through decrease even with low interest rates.

All right -- seek a -- a lot management thank you so much for joining us.

-- -- back thank you.

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