Fred Hubler’s article opens by noting that given current inflation, a traditional 60/40 stock-bond portfolio may no longer deliver the same growth or yield it once did, creating a need to think outside the box for new ways to protect and grow capital.
He points to real estate, via REITs, DSTs, and Reg D offerings, as a natural inflation hedge, since rents and property values tend to rise with inflation, generating income that keeps pace. He compares this to owning a vineyard with a built-in pricing advantage, where rising costs simply boost revenue without needing more land or resources.
Hubler also highlights infrastructure, particularly in renewable energy and transportation, noting that long-term contracts which adjust for inflation can provide inflation-linked returns, likening it to planting a fruit tree with a guaranteed buyer whose price rises right along with inflation.
Key point: with traditional portfolios feeling the pinch from inflation, Hubler frames real assets like real estate and infrastructure as built-in inflation hedges rather than just diversifiers.
You can find the whole article on Forbes: How To Beat Inflation: Why Your Investment Portfolio Needs Alternatives Now.