Making sense of the markets this week: March 1, 2021 | MoneySense

Powell soothed the markets, suggesting he doesn’t see the threat of inflation—ha! The commodities and bond markets would disagree. 

From that same Business Insider post… 

“‘So soothing words for markets seems likely but the inflation fears are unlikely to go away whatever he says,’ Deutsche Bank strategist Jim Reid said.”  

And here is a great resource: a link to a Pimco blog that covers their take on inflation, market conditions and scenarios. Pimco is a highly-regarded global fixed income specialist. That post offers a counterpoint; Pimco is not as concerned. 

“And while the outlook for fresh government support reinforces our view that inflation will likely exceed the central bank’s target, we still view the longer-term inflationary risks as balanced.”

Keep in mind that if you’re early in the accumulation stage, the ability to buy stocks at lower prices can be a gift. You might be able to ignore all of the above if you have the ability to withstand volatility and stock market corrections. If you’re nearing retirement or in retirement, you might ensure your portfolio is protected. 

For me (in semi-retirement) that protection includes those out-of-favour bonds, cash, bitcoin, gold and commodities, and quality stocks. It’s my version of an all-weather portfolio that incorporates the ability to take on inflation. 

And I am certainly not bailing on my bond ETFs. As I finish up this post on Friday morning, bonds have stabilized. My U.S. treasuries ETF is positive. 

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