Is your portfolio protected against inflation?

Inflation is a risk to your portfolio, better get some protection while you still can.

Inflation is starting to rise across many economies, which is to be expected given the amount of monetary stimulus the global economy has seen since the COVID-19 pandemic.

It is important to note that economic data gets released after the facts are out. What does this mean? Essentially, in economics we see a delay between when economic events occur and the time when these economic events have a consequence. We refer to this as an economic time lag. All that this means is that economic policy changes may not have its desired effect directly after implementation as it takes time (usually three months at least) for these policy changes to filter through the economy and have its desired effects.

What does this mean for your portfolio?

Basically, we look at asset classes that can act as an active hedge in your portfolio, especially if your portfolio is comprised of asset classes who are highly exposed to inflationary risk.

Generally, gold and silver has been widely recognized as active hedges against inflation. However, adding physical gold or silver to your overall asset allocation may not be the easiest task out there. This is where your seasoned asset managers and financial advisors step in.

To give an example, many companies who operate within the gold and/or silver mining and processing industry have returns that are highly correlated to the underlying spot market prices of these assets. This means that they can act as a secondary hedge on your portfolio without having to physically buy the underlying assets or having to go to the futures market.

See a qualified and experience Financial Advisor.

Before you add any asset to your portfolio, it can always be useful to see a qualified and accredited Financial Advisor before doing so. If you are investing funds that you have future requirements for it would always be to your advantage to get an opinion from a professional or from a seasoned person within the industry.

 

Visit our website to see how we can help you with structuring an efficient, well-suited investment plan that will help you reach your future investment goals!

Who are we?

Caveat Capital Management is a strategic advisory firm based in Cape Town. Caveat Capital Management specializes in structuring tailor-made investment portfolios that serve your needs now and grow with you as your needs change. Caveat works to maximize your gains and minimize the risk.

What we offer

Caveat Capital Management has a competitive fee structure that incentivizes the portfolio manager to perform and the remuneration is highly linked to the performance of the portfolio. Caveat Capital MGMT (Pty) Ltd is a CATII – Authorized Financial Services Provider (FSP no. 24777) registered at the South African Financial Services Conduct Authority (FSCA). Meaning that we have the required licensing to structure full-discretionary portfolios structured to your needs.

Disclaimer

This report does not guarantee the suitability or potential value of any information or particular investment source. The information provided is not intended to, nor does it constitute financial, tax, legal, investment or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified financial adviser. Nothing contained in this publication constitutes a solicitation, recommendation, endorsement or offer by Caveat Capital Management, but is merely an invitation to do business.

Information and content

The information in and content of this publication are provided by Caveat Capital Management as general information about the company and its products and services. Caveat Capital Management does not guarantee the suitability or potential value of any information or particular investment source. The information provided is not intended to, nor does it constitute financial, tax, legal, investment or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified financial adviser. Nothing contained in this publication constitutes a solicitation, recommendation, endorsement or offer by Caveat Capital Management, but is merely an invitation to do business.

Caveat Capital Management has taken and will continue to take care that all information provided, in so far as this is under its control, is true and correct. However, Caveat Capital Management shall not be responsible for and therefore disclaims any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered as a result of or which may be attributable, directly or indirectly, to the use of or reliance upon any information provided. Past performance is not an indication of future performance. Caveat Capital Management does not provide any guarantee regarding capital or performance.

Caveat Capital MGMT (Pty) Ltd is a CATII – Authorized Financial Services Provider (FSP no. 24777) registered at the South African Financial Services Conduct Authority (FSCA).