Trade Wars, Rising Rates & Volatility: Time to Hedge?

By Robert V. Gahagan - August 14, 2018

The synchronized global growth story appears to be under some stress, as evidenced by data in the second quarter of this year. Growth could further decelerate if protectionist trade policies around the world go from rhetorical to reality. If so, it could be mean disruption to supply chains, higher consumer prices and uncertain business planning until cooler heads prevail.

This trade war talk is leading many investors to wonder how they can protect themselves in this rather uncertain environment. While there’s no guarantee against loss when you invest, I’d suggest looking into inflation protection for your portfolio. In my mid-year update video, I lay out some strategies in an environment of rising rates and a possible trade war.

Robert V. Gahagan
Robert V. Gahagan
  • Related Articles
  • More From Author

Emerging Markets Debt: An Important Diversifier

The return potential of developing economies is a given. But, the ability to capture it without undue risk is not.

Three Ways to Unlock Value in Today's Credit Market

As the credit cycle ages and corporate bond investors grow increasingly defensive, we believe select strategies may continue to deliver value.

Global Bond Market Brief

Monthly analysis of the global bond market.

    Trade Wars, Rising Rates & Volatility: Time to Hedge?

    The on-going trade war talks could lead to uncertain environments until cooler heads prevail. What strategies can investors use in such an environment?

      Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

      Portfolio managers are not licensed by the Hong Kong Securities and Futures Commission to perform any regulated function in or from Hong Kong. Furthermore, none of the portfolio managers are located in or operate in or from Hong Kong.

      FOR INSTITUTIONAL USE ONLY | NOT FOR PUBLIC USE