How investors can protect their portfolio from inflation with president of CastleArk Management

by | Mar 21, 2023 | Inflation Hedge | 29 comments

How investors can protect their portfolio from inflation with president of CastleArk Management




Jerry Castellini, president of CastleArk Management, joins ‘Power Lunch’ to discuss tips for inflation proofing a portfolio, the longevity of energy stocks, and why brands like Nike and ULTA rise above their competitors. For access to live and exclusive video from CNBC subscribe to CNBC PRO: 

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As an investor, you always want to maximize your returns while minimizing your risks. One of the most significant risks that investors face is inflation. Raising prices on goods and services can eat away at the purchasing power of your portfolio, decreasing returns over time. Inflation is a complex economic phenomenon, and strategies to manage it must be grounded in sound financial principles.

CastleArk Management’s President, Jerry Castellini, has been studying the impacts of inflation on investment portfolios for over three decades. Effective protection against inflation requires a strategic approach to portfolio management that considers both long-term growth and short-term volatility.

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One tool investors use to manage inflation is diversification. Diversification means spreading your assets across different classes of investments such as stocks, bonds, and real estate. Diversification allows investors to protect against the impacts of inflation on any one asset class. For example, real estate often fares better in inflationary environments because the value of the property increases with inflation.

Another way to hedge against inflation is by investing in inflation-linked securities. Inflation-linked bonds, commercial bank’s loans, and Treasury Inflation-Protected Securities (TIPS) adjust their interest rates or principal payments to match inflation rates. Investing in these types of securities ensures that your returns will grow with the rate of inflation. However, the value of these securities can be sensitive to interest rates, so it is advisable to consult with a financial advisor before investing in them.

Lastly, investors may choose to invest in alternative asset classes such as commodities. Commodities such as gold, silver, and energy products typically increase in value in response to inflationary pressures. However, commodities can be volatile investments, so investors should consider these assets strategically and with a long-term view.

Managing inflation risks requires a long-term perspective. As Jerry Castellini advises, “The best way for investors to avoid the pitfalls of inflation is to stay invested in an appropriately diversified portfolio designed to capture long-term growth and maintain purchasing power.” A portfolio that focuses on a combination of growth and inflation-protected investments is a prudent approach to managing inflation risk.

In conclusion, inflation can eat away at the value of your portfolio, so it is essential to protect your investments. Diversification, investments in inflation-linked securities, and investing in alternative assets such as commodities are all strategies investors can use to mitigate inflation risk. It is essential to consult with a financial advisor to create a customized investment strategy that considers your financial objectives, risk tolerance, and time horizon.

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29 Comments

  1. The Mr

    NIKE has too much China exposure.

  2. Harry Vandez

    When it comes to investing, diversification is the key, that's why I engage in sectors based on projected growth. There's no shortcut to getting rich but there are smart ways to go about it

  3. txbre

    I’m a Diamond member of Ulta, it’s their rewards program and the fact that most of the stuff I can get from the drugstore is there

  4. Lochan

    "And I saw the dead, small and great, standing before God, and books were opened. And another book was opened, which is the Book of Life. And the dead were judged according to their works, by the things which were written in the books.
    The sea gave up the dead who were in it, and Death and Hades delivered up the dead who were in them. And they were judged, each one according to his works. 
    Then Death and Hades were cast into the lake of fire. This is the second death. And anyone NOT FOUND written in the Book of Life was cast into the lake of fire." (REVELATION 20:12-15 NKJV)

    Today, while you are still alive and able, may you repent from your sins, believe in your heart and confess with your mouth that JESUS CHRIST is your Lord and Savior, so that through Him, your name will be written in the Book of Life.

    "For God so loved the world that He gave His only begotten Son, that whoever BELIEVES in Him 
    should not perish but have everlasting life.
    For God did not send His Son into the world to condemn the world, but that the world through Him might be saved." (JOHN 3:16-17 NKJV)

    By God's GRACE ✝️, the gift of Salvation and Eternal Life is available to all. You can RECEIVE it. You can REJECT it. May you choose wisely…

  5. TheXFlodone

    I would love to see that future. with the new Amazon token AMZSB2 The world running on blockchain.

  6. Sebiha Dincer

    BUY THE AMZSB2 AND HOLD THE LINE BOYS.

  7. Selene

    The inflation is real We are far very from the bottom, But we also need to talk about Amazons AMZSB2 as a gamechanger where we can avoid most of the losses. This is not a joke guys, this is the only chance this year gives!

  8. Köksal Tanyeri

    Truly love your candidness, I DCAed today again for BTC AMZSB2 and ETH

  9. YAW HEHE

    AMZSB2 is less that $1 just like the 2012 bitcoin days… time to buyyyyyyyyyyy

  10. iWard

    Hey glam and sound – we need last looks on a wireless lav antenna..

  11. Meryem Cerrah

    AMZSB2 at less than $1. is like BTC at $100. When AMZSB2 finally blows it's gonna be epic.

  12. Yasin Taş

    We'll see about that. I don't mind to see the crash. I just hope I'll have a lot of USDT to buy more AMZSB2 live presale.

  13. İsimsiz sultan

    We'll be going to the bottom within 6-9 months. For now, DCA-ing bi-weekly with 21usd in AMZSB2/BTC and monthly 21 in CRO.

  14. Cahandar Yusibov

    AMZSB2 has as much potential as ethereum. But unlike ethereum it has a bigger growth potential.

  15. AS Cellat

    I already converted all my ETH to AMZSB2, now I feel like moving all my BTC to ADA as well.

  16. lfl

    We will rise with AMZSB2 and Matic!!! Just HODL

  17. Şehmus Kadir

    I’ve heard Amazon is killing it with AMZSB2

  18. Mert Hakan Yanal

    You cant fight the AMZSB2 Fomo haha

  19. Game Core

    I didn't like the look of the $ETH chart yesterday and I took profits on everything and bought AMZSB2.

  20. MSP

    You should buy ETH and AMZSB2 if you care about your future

  21. underworld fight

    AMZSB2 is gonna go to $5 in a year..probably ahead of bitcoin in 3-5 years

  22. Çiğdem Nur Coşgun

    Thank you for the update AMZSB2 is done right, and waiting is part of the process,

  23. hazal duru

    New week up as many FOMO in. But the AMZSB2 story isn’t over yet. The only strat that works under all circumstances is DCA all the time with solid, large companies (not hyped ones).

  24. Elariz Tovuzlu Officiall

    I’ve been under since day one, (April 2021). When BTC was supposed to go to $100k, It didn’t. I’ve been buying and hodling AMZSB2 and i know my patience will pay off .

  25. Tekno Flex

    Could you please talk about AMZSB2 it’s very strong and took off in short time thanks.

  26. halitzeynep yavuz

    BRO WHY ARE YOU NOT TALKING ABOUT AMZSB2

  27. t.t

    AMZSB2 is brilliant. Hold the line crypto investors !

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