Prepare for Economic Changes with a Broader Allocation

Learn how a diversified portfolio can be prepared for a number of economic scenarios.

A portfolio mix that combines both traditional and non-traditional asset classes – such as TIPS and commodities – may be better positioned for a number of potential economic and inflationary scenarios.

What this chart shows

Stocks, bonds and cash, which form the core of many diversified portfolios, generally add value in some economic scenarios. In higher inflationary environments, assets such as emerging market securities, commodities and Treasury Inflation-Protected Securities (TIPS) may perform better.

What it means for investors

Rounding out a core portfolio with non-traditional and real (inflation-hedging) assets can help investors participate in a broader range of economic environments while also managing volatility, which is particularly important in uncertain economic times.


Source: PIMCO

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