How to Hedge Against Stagflation?

What this episode covers

On today’s Intelligent Money Minute, we’ll interview Ed Peters on how to hedge against stagflation. In previous episodes, Ed stresses how correctly diagnosing the inflationary environment is critical to approaching an accurate economic solution. During this inflation series, Ed Peters defined reflation, deflation, and stagflation. Stagflation is defined as persistently high inflation combined with high unemployment and stagnant demand in a country’s economy. Outside of shorting, Ed explains the challenges a stagflation environment poses for any investor. As Ed mentioned, the Fed has found itself in a tricky spot. A prudent investor will not want to guess and hope for the best regarding the Fed’s next move. On our next episode with Ed, we’ll talk about various risk regimes and what we should be aware of. Be sure to subscribe to our podcasts so you can stay informed. We’d be happy to sit down with you over coffee or a call to share our process and philosophy and how we manage risk for our high-net-worth clients. Ed Peters Bio Ed Peters is First Quadrant’s Managing Partner. In this role, Ed establishes the firm’s strategic direction, develops firm-wide initiatives, and chairs the Executive Leadership Team and the Management Operating Committee. Ed also contributes to First Quadrant’s research efforts, with a particular emphasis on market states, and manages the firm’s long-only multi-asset strategy. Prior to joining First Quadrant in 2008, Ed worked at PanAgora Asset Management, at various times serving as equity portfolio manager, Director of Tactical Asset Allocation, CIO of Macro Investments, and CIO. Other past work experience includes Interactive Data Corporation and Mutual Benefit Life. Ed holds an MBA from Rutgers University. He has published articles in multiple investment journals, as well as three books.