Bryan Beatty Featured in Article: Girding for Inflation—Weathering the Inflationary Cycle
Bryan Beatty Featured in Financial Planning Article, "Girding for Inflation—Weathering the Inflationary Cycle"
August 1, 2012, Financial Planning — In his article, Girding for Inflation: Weathering the Inflationary Cycle, reporter Joseph Lisanti writes:
“Anyone who’s bought gas, paid a medical bill or sent a child off to college recently knows that the Consumer Price Index doesn’t tell the whole story of inflation. Whether you think inflation is here now or is headed our way, planners should prepare for it. Even at an annual rate of 4.5% – the inflation level when President Richard Nixon imposed wage and price controls in August 1971 – prices would double in roughly 16 years.”
For the article, he interviewed Bryan Beatty, a financial planner at Egan Berger & Weiner in Vienna, Va.:
Commodities are widely seen as an economic canary in a coal mine. “The very first place inflation always shows up is in commodities,” says Beatty. But they aren’t a panacea for inflation. When prices rise so high that they choke the economy, commodity bull markets can end abruptly. “They can easily collapse if that inflation causes a recession,” Beatty says.
Less costly alternatives are actively managed funds that come under the 1940 Act. Beatty says he has moved to such funds from static ETFs because of the market exaggerations caused by traders buying and selling gold and energy. “We don’t want the distortion caused by crowded speculative trades,” he says.