The topic of rising inflation continues to dominate headlines as June's Consumer Price Index report recorded the largest year-over-year increase in over 13 years. On today’s podcast, host Pamela Ritchie is joined by Portfolio Manager David Tulk and Institutional Portfolio manager Ilan Kolet from Fidelity's Global Asset Allocation Team. David and Ilan discuss inflation and how investors can best protect their assets in an uncertain inflationary environment. David notes that purchasing assets that have a hedge against inflation risk can counteract liabilities that have some link to inflation. Ilan says that certain inflationary data will fall out at various points in time as they are temporary. He believes that increases in airfares and car rental prices, supply chain disruptions, and the labour market and service inflation will fade as we emerge from the pandemic. Ilan and David also discuss whether it is best to hedge for inflation or outperform it, noting that the asset classes that best hedge unexpected changes to the inflation rate are commodities, gold, oil, natural resource producing stocks.

Recorded on August 4, 2021.