Investment Strategy Update: Reflation Preparation

There are nascent signs of inflation beginning to percolate within the U.S. economy, driven by higher input prices and supply shortages. Pent-up pandemic savings could become an inflationary force once the economy more-fully opens and offers opportunities for spending. The Fed has grown the monetary base materially and has emphasized a willingness to tolerate inflation persistently within the 2.0% to 2.5% range. How will real estate and equities perform in an environment of modestly rising inflation?