Pimco Says Use Commodities in Portfolios to Hedge Price Surge
- Prices have soared following Russia’s invasion of Ukraine
- Inflation may be biggest driver of returns, Pimco says
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Investors are eyeing the surge in global commodity prices following Russia’s invasion of Ukraine as a way to shore up portfolios struggling with a potential inflation and growth shock.
Pimco has recommended adding commodities to the typical 60/40 strategy as a hedge against spiraling price pressures. The call comes as this strategy, named for the conventional allocations of stocks to bonds in a well-balanced portfolio, heads for its steepest quarterly decline since the initial panic of the pandemic two years ago.