PIMCO has written an opinion on the use of equities to hedge inflation

PIMCO has written an opinion on the use of equities to hedge inflation. In summary, it gives three points on that proposition. Historically, broad equity returns have not intrinsically provided a good hedge against inflation. Three key attributes may help companies withstand inflationary environments - pricing power, supply side advantages and a willingness and ability to sustain dividend hikes at a rate faster than inflation. To realize equities' long-term potential as a key source of portfolio returns, investors should consider enlisting active managers who select stocks with a view on inflation and its effect on specific companies. (VIEW LINK)