Inflation is on everyone’s minds right now. People are wondering how to fight inflation. The current inflation rate in 2022 is 8.52% as of August 10. The team at PR Wealth develops portfolios that could potentially keep up with or beat inflation. The main cornerstone for this strategy is diversification. PR Wealth utilizes dimensional funds which are based upon academics, says Joshua Robinson, PR Wealth Managing Director.
“It’s evidence-based investing,” he says. “We look at where the returns are derived from.”
These funds are grounded in economic research and backed by decades of empirical research. That’s a long, ornate way to say these funds rely on information about what drives returns while maintaining diverse portfolios.
“We’re not trying to outguess the market,” said David Perry, Managing Director at PR Wealth. “We’re trying to participate in the market, using things that we can prove that work over time. That’s why it’s called evidence-based investing.”
Investment portfolios at most wealth management firms contain 2,000 – 3,000 holdings. At PR Wealth, the portfolios have more than 15,000 holdings.
“We’re more broadly diversified around the world,” Joshua added. “So, if a recession happens, which I believe we are currently in here in the United States, then we might be able to garner returns from around the world, such as international and emerging markets. This broad diversification has helped our clients weather this inflationary period.”
Joshua and David counsel their clients that the markets are cyclical and have always recovered with a properly diversified portfolio, typically within two years of a recession ending.
“There is no guaranteed protection against inflation or market downturns,” David said. “But we can help design portfolios based upon academic research that have been proven to work over time.”
No one knows for sure when markets will recover or when inflation will go down. But if you’re looking to invest, everything is currently on sale. Stock prices are currently low right now, making it easier to buy into the market and take advantage of the recovery process. PR Wealth can help you design a portfolio for your goals and your future.
To get started with investing with PR Wealth Management Group and learn more about dimensional funds, contact us.
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