How Can You Spread Risk in Your Portfolio to Defend Against Inflation?
With inflation back at the top of investors’ worry lists and long-term Treasury yields at their highest in decades, the old playbook of stocks and bonds alone may not be enough.
Omar Qureshi, Managing Director and Head of Office at Hightower Signature Wealth in St. Louis, spoke with Bloomberg about strategies to protect your portfolio from inflation.
Commodities
Qureshi recommends ownership of real physical commodities such as copper, as well as infrastructure necessities such as toll roads, bridges, cell towers, and even airports. These assets can generate revenue through long-term contracts that can be adjusted for inflation, allowing owners to pass higher costs on to customers. Qureshi says:
“You could buy a hydroelectric dam. You could buy a data center and lease it out. You could own a pipeline and charge on the volume of the contracts going through. They’re boring, but you can’t have an economy run without them.”
Energy
Companies that can raise prices without losing customers may be beneficial to your portfolio during times of high inflation. Qureshi suggests energy producers with oil and natural gas reserves, mining companies that own mineral deposits, and farmland and timberland owners.
Funds
Most of your stock portfolio should still be in broad-market funds, such as those that track the S&P 500 Index, Qureshi says. Data compiled by Bloomberg Intelligence indicates that S&P 500 companies’ earnings are projected to grow 23% in the third quarter of 2026, compared with the same quarter in 2025. If you put 80-90% of your portfolio in such index funds, the rest can be in more targeted investments.
Consider if any of these strategies could help sustain your portfolio in times of high inflation, and remember that a sturdy, well-built portfolio may be a better defense than chasing every possible hedge against inflation.
Read the full Bloomberg article for more insights on protecting your portfolio against inflation
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