The regime has changed. We know diversified portfolios are robust in a disinflationary world, as that is the regime that has prevailed for the past few decades. The recent poor performance of global equities (-14%) and bonds (-10%) in the year to June 2022 has highlighted that some portfolios may not be so robust in an inflationary world. Identifying assets with real cash flows that are resilient to inflation can help restore balance in a diversified portfolio, should the inflation environment remain volatile. The key is being able to access these asset classes in an innovative and flexible manner to deliver a more consistent return profile to clients. The future is definitely not what it used to be. - Watch Al Clark, MLC Asset Management on Portfolio Construction Forum and earn 0.50 CE/CPD hrs