The inflation specter is hanging over markets again, and it may be the most boring investments that end up shielding your portfolio from its effects, Wells Fargo says.
The investment bank said it’s eyeing one area of the market in particular where investors could find safety amid fears of sticky inflation: short-term fixed income. It’s an area the bank says looks primed for steady gains in an environment where inflation is running higher and interest rates remain elevated, Brian Rehling, the co-head of global fixed income and digital asset strategy at the bank, wrote on Wednesday.
Rehling pointed to short-term US Treasurys, certificates of deposit, and money-market funds — three short-term fixed-income investments that tend to benefit when short-term interest rates rise.
Here are the yields on some popular investments in the categories Rehling…
