Landsberg advises investors to focus on rebalancing and diversifying their portfolios to protect against inflation. He warns against overexposure to a specific investment theme and recommends diversification across themes, not just sectors. He suggests investing in high-quality companies with pricing power and earnings growth and identifies energy, financials, and gold as inflation-benefitting trades.
Key takeaways:
- Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, expects a re-acceleration of inflation for the rest of 2024 into 2025, potentially rising to 3% as early as January and hitting a mid-3% level in 2025.
- High shipping rates from China and rising daily living expenses like food prices, rents, and insurance prices are indicators that inflation could be worse than expected.
- Landsberg advises investors to focus on rebalancing and diversifying their portfolios, not just on sectors but also on themes, to protect against inflation.
- He suggests investing in inflation-benefitting trades such as energy, financials, and gold, and in high-quality companies with pricing power and earnings growth.