Investment suggestions for inflationary periods from Chris Brightman - Business Insider

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'I'm sure it will reverse': A prominent CIO shares the 3 perfect places to put your money once inflation rears its ugly head

, one would expect inflation — a sustained increase in prices — within the US economy to be running rampant. After all, in theory, a tight labor market and healthy consumer should push prices higher.

Brightman noted that since he began his investment career in 1982, inflation and interest rates have slowly and steadily trended lower. However, he said he's positive that this type of phenomenon "is not a perpetual environment." At some point, inflation and interest rates will rise — and investors who aren't adequately prepared for the increase will feel the full brunt of impact.

"When this reverses — and I'm sure it will reverse — you won't want to be in the sort of instruments that did so well during the disinflationary boom," he said. "There are a number of traditional inflation-protecting asset classes.""Perhaps the most obvious and least risky would be TIPS," he said. For the uninitiated, a real estate investment trust, or REIT, is a company that owns income-generating real estate.

 

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