Written by Members of the Castleview Investment Committee

First, our ongoing concerns about inflation seem to be materializing as recent consumer-oriented (CPI) and commercial-oriented (PPI) pricing measures indicate a resurgence across many industries and products. Barring any change in policy from global central banks and Congress, we expect this trend to continue for the foreseeable future.

We continue to view both the opportunities and risks in 2021 as walking a tightrope between two elephants. Navigating the tightrope involves the need to carefully target an asset allocation that manages dual risks on either side. One elephant that can influence an investor’s balance is the potential for significant erosion of purchasing power.