Learn specific guidance on portfolio construction to counteract the negative impact of inflation.
Inflation comes and goes. It has been very low for a number of years until 2024. Now, the specter of inflation is clear. Some asset classes thrive during inflationary periods. This course reviews U.S. inflation over the past 99 years and identifies diversified investment portfolios that have provided better ‘real’ performance during periods of higher inflation compared to simple stock and bond portfolios. This material will also provide detailed guidance on how to build a modern 12-asset class portfolio that has components that perform better during periods of higher inflation.Learning Objectives
- You will be able to define how inflation is measured.
- You will be able to describe inflation over the past 9 decades.
- You will be able to discuss methods to combat inflation in an investment portfolio.
- You will be able to explain the correlation between inflation and interest rates.
Agenda
Review of Inflation From 1926-2024- Annual Inflation Rate (Based on CPI) Bar Graphs
- Annual Inflation Rate (Line Graph)
- Federal Discount Rate Superimposed on CPI Line Graph Illustrating Correlation Between CPI and Interest Rate
- Bar Graph of Aggregate Bond Performance With Line Graph of Annual Interest Rate (1948-2024)
- Division of Results Into Two Groups (1948-1981 and 1982-2024)
- Review of Investment Portfolios With Varying Degrees of Diversification
- Multi-Asset Portfolio vs. 2-Asset Portfolio
- Performance Review by Specific Asset Class (Gross and Inflation-Adjusted)
- Review of Gross and Real Performance Over Past 50 Years
- Performance Review by Asset Class and Type of Portfolio
- Analysis of Portfolio Performance With and Without Commodities, Listing of Commodities Funds
- Performance Evaluation of the 7Twelve Model® Over the Past 25 Years Based on Lump Sum Investment vs Retirement Portfolio Experiencing Withdrawals
- Low-Cost Versions of the 7Twelve® Model
Speaker(s)
Craig L. Israelsen, Ph.D.7Twelve (TM) Portfolio
- Developer of the 7Twelve® portfolio
- Executive-in-Residence, Financial Planning Program, Utah Valley University
- Wrote monthly for Financial Planning Magazine for over 20 years
- Author of several books
- Previously on the faculty at University of Missouri (1991-2014) and Brigham Young University (2004-2013)
- Has published dozens of journal articles and hundreds of professional articles
