Investments For Environment of Higher Inflation and Lowered Interest Rates?

[Ian S]

Today's announced PPI increase for January was higher than expected but there is a real chance that come May or shortly thereafter, the Fed will reduce interest rates. I can think of inflation-adjusted bonds, gold, and real estate but what other investments would folks suggest in such a scenario? Also, what investments would you lighten up on?

 

[Onda]

Cash. I would think about moving cash into something like SCHD, PM, KO.
Those have already had a run-up, maybe in anticipation of what you described.

 

[Semi-Retyrd]

The FOMC has 12 voting members. If core PCE remains around 3% or seems to be moving higher, the Fed will not lower interest rates regardless of who is chairman.

 

[Koolau]

If I may ask, about how much are we talking about for your change of investment? Makes a difference in what makes sense.

For instance you can get 3 year MYGAs but probably need at least 100K to get the best rate.