TIPS, real estate, and commodities are great inflation-hedging, liquid investments, says Morningstar's David Blanchett, who details the importance of exposure to these assets.
Oppenheimer's Alessio de Longis says commonly followed inflation statistics are not necessarily reflecting how higher import prices are pinching consumers' purchasing power.
TIPS are a good, low-risk way to hedge against inflation, but the CPI measure they are based on is less than perfect, says Research Affiliates' Rob Arnott.
For advisors worried about inflation, CPI swaps offer a more efficient hedge because they are a higher-yielding and shorter-duration alternative to TIPS, J.P. Morgan's Cavanaugh says.