Bloomberg Surveillance · Saturday, September 19, 2026
Alicia Levine of BNY Wealth suggests that in a higher inflation environment, equities and real assets are more effective inflation hedges than traditional government bonds. She notes that while fixed income is still part of portfolios, the focus is shifting towards emerging market debt and high yield, and away from longer-duration treasuries, due to concerns about the Federal Reserve's ability to combat inflation effectively.
“I think the Fed hiking right now into what is the inflation that's being caused by the increase in oil prices may not be that effective, actually. And so what kind of inflation hedge can we have in portfolios? And that's what we're doing in portfolios here. So it's not just like short and intermediate bonds, but also looking at real assets and infrastructure.”
“Because we think we're just in a higher inflationary world since COVID, the reshoring, the friend shoring, the nationalizing of businesses for critical industries, whether it's you know, pharmaceuticals or whether it's chips, manufacturing capacity, that's all coming back to home countries.”
“And there is no central bank that's going to hike high enough to squeeze it out to get to 2%.”