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The Inflation Inflection

Adjusting to the New Paradigm
The journey towards structurally higher inflation is beset with unusually high cyclical uncertainty. At Neuberger Berman, we think that means a portfolio that is prepared for higher inflation should contain not only assets that can MITIGATE against and TAKE ADVANTAGE of inflation, but also assets that can DIVERSIFY against the uncertainty and volatility of that journey.
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Explore our views on Inflation


Equities: Pricing Power and Renewed Focus on Yield


Equities have tended to outperform bonds during periods of higher inflation, but that appears to have more to do with the strong growth that often accompanies rising inflation, rather than inflation itself. The potential for a less favorable growth-inflation mix is therefore good reason to re-examine style and sector tilts in equity portfolios, but also to re-think the balance of passive versus active approaches.

Equities Inflation
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Expectations for Value
AAC Outlook 2Q 2022
Erik Knutzen and Raheel Siddiqui discussed the AAC's views on how to navigate a challenging asset allocation landscape in further detail.
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Session II: Equities
Listen to Eli Salzmann and Raheel Siddiqui on the equity investment landscape amid the current inflationary backdrop.
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Fixed Income: Short Duration, Floating Rates and Flexible Strategies


Fixed income portfolios are arguably most at risk from an inflationary environment. Inflation and higher rates tend to lower the present real value of a fixed income stream. The longer-dated those income streams are, the more sensitive their present value is to changes in rates—they exhibit longer duration. Should a long-term real yield of 1% or even zero be required to make inflation settle between, for example, 2.5% and 3.0%, nominal yields will be substantially higher than they are today.

Fixed Income Inflation  
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Expectations for Bank Loans
Expectations for Fixed Income
Session III: Fixed Income
Hear from Ashok Bhatia and Jamie Iselin on Fixed Income implications amid this inflationary investment landscape
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Alternative Investments: Real Assets and Uncorrelated Strategies


Historically low bond yields, tight credit spreads and high equity market valuations raise the likelihood that stocks and bonds will become more correlated and more volatile. In our view, the potential for structurally higher inflation and a less favorable growth-inflation mix increases that likelihood still further. The traditional 60/40 portfolio appears vulnerable. We think alternative diversifiers will need to play a more prominent role, with a focus on those with particular sensitivity to inflation.

Alternatives Inflation
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Expectations for Commodities
Expectations for Private Equity
Expectations for Reits
Session IV: Private Markets
Tony Tutrone and Susan Kasser share their views on how Private Equity is impacted by today's inflationary environment
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Session I: Real Assets
Hear Neuberger Berman’s senior investment leaders share their views on how to navigate real assets in the current inflationary environment.
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