Asset Allocation

piles of moneyThe economy goes through periods of higher and lower inflation and earnings. During these cycles different investments outperform, leading to changing asset allocations. When growth is good and inflation is low, debt and equity generally do well. When growth and inflation are high, equities are generally best. When weakening growth accompanies high inflation, commodities rule. And when inflation and growth are both weak, cash is popular, as are risky investments.

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