The Role of Private Alternatives in Hedging Inflation

A Closer Look at Infrastructure, Real Estate, and Agriculture. Investors have given little thought to inflation until recently as it has remained largely in check even though the 2008 financial crisis and the COVID-19 pandemic prompted some central banks to engage in quantitative easing — buying longer-term securities to increase the supply of money and lower interest rates. The central banks’ approach has kept borrowing costs low and helped keep economies afloat through the pandemic. However, the prevalence of this “cheap” money now may contribute to rising commodity prices and bubbles appearing in certain asset classes.