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Is There a Place for Defensive Strategies in an Inflationary World?

Michael Lin
Investment Strategist – Active Quantitative Equity Team

  • Long-term data confirms that higher inflation periods should not be confused with outperformance of riskier, cyclical stocks
  • Higher inflation environments have actually been positive for defensive sectors like Health Care, Staples and Communication Services
  • There is strong economic rationale behind the ability of defensives to provide an inflation hedge