{"id":37454,"date":"2023-08-14T13:55:20","date_gmt":"2023-08-14T13:55:20","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2023\/08\/14\/the-war-on-inflation-isnt-over-yet-despite-what-some-people-think\/"},"modified":"2023-08-14T13:55:20","modified_gmt":"2023-08-14T13:55:20","slug":"the-war-on-inflation-isnt-over-yet-despite-what-some-people-think","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2023\/08\/14\/the-war-on-inflation-isnt-over-yet-despite-what-some-people-think\/","title":{"rendered":"The war on inflation isn&#8217;t over yet, despite what some people think"},"content":{"rendered":"<div style=\"text-align:center\"><\/div><p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header article-header--story\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\" data-aqa=\"nav-breadcrumb\">\n<h2 class=\"visually-hidden\">Breadcrumb Trail Links<\/h2>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\"> News <\/li>\n<li class=\"breadcrumbs__item\"> Investor <\/li>\n<li class=\"breadcrumbs__item\"> Economy <\/li>\n<\/ol>\n<\/nav>\n<div class=\"article-header__detail\">\n<div class=\"article-header__detail__texts\">\n<p class=\"article-subtitle\"> Martin Pelletier: Betting one\u2019s portfolio on an outright win over rising prices could be a dangerous proposition <\/p>\n<div class=\"article-meta\">\n<p> <span class=\"published-date__since\">Published Aug 14, 2023<\/span> \u00a0\u2022\u00a0 <span class=\"updated-date__since\">Last updated 3\u00a0minutes ago<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">4 minute read<\/span> <\/p>\n<\/p><\/div><\/div>\n<figure class=\"featured-image\" data-aqa=\"featured-image\"><picture class=\"featured-image__ratio\"><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">Dump trucks loaded with oilsands drive through the Suncor Energy Inc. mine in Alberta. If oil prices are higher in the months to come, something that is quite possible, where will the large drops in inflation come from?<\/span> <span class=\"credit\">Photo by Ben Nelms\/Bloomberg<\/span> <\/figcaption><\/figure>\n<\/div>\n<\/header>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p data-async=\"\">Those in political power along with equity market participants seem to think the war on inflation has already been won, but perhaps it is too soon to declare victory.<\/p>\n<p>Canada\u2019s Minister of Finance Chrystia Freeland certainly appeared to be declaring mission accomplished a few weeks ago when she described the 2.8 per cent inflation print for June as a \u201cmilestone moment.\u201d<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_2\">\n<section aria-describedby=\"advertisment7453518212540896485914889647292416\" 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class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p data-async=\"\">South of the border, July\u2019s 3.2 per cent inflation figure was welcomed with open arms by long-duration equity participants, with the Nasdaq rising on the news. As usual, long-duration bond market investors were having none of it, as 20- and 30-year U.S. treasuries traded slightly down on the day.<\/p>\n<p>Some serious progress has been made on inflation, but this war is far from over, even though the United States government is spending as if it is. The U.S. budget deficit has hit US$1.6 trillion so far this year, more than double what it was a year ago. We worry that as this continues it could undo a large part of the progress accomplished through interest rate hikes by the United States Federal Reserve.<\/p>\n<p>We\u2019re already seeing some signs emerging that inflation is starting to fight back. For example, the U.S. July CPI print marked the first month-over-month increase since June 2022. Though inflation was down year over year, the largest components of the drop were fuel oil, down 26.5 per cent, gasoline, down 19.9 per cent, and gas utilities, down 13.7 per cent. Core inflation for the month still came in at a hot 4.7 per cent.<\/p>\n<\/section>\n<div class=\"js-widget-content article-content__widget-group article-content__widget-group--content-slot13 article-content__widget-group--newsletter-slot\">\n<section aria-labelledby=\"FPInvestor5871830226386572982580534285697024\" class=\"newsletter-widget None background--primary-light-gradient\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-aqa=\"widget-newsletter\" data-newsletter=\"single\" data-newsletter-component=\"\" data-target-list=\"FP_Investor\" data-widget=\"newsletter\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Financial Post\" class=\"newsletter-widget__banner\" height=\"60\" loading=\"lazy\" fifu-data-src=\"https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/dcs-media\/images\/2023\/2\/3\/1675439253266-fp-investor-banner-01302023.jpg?ssl=1\" width=\"97\"\/><\/p>\n<div class=\"newsletter-widget__body\">\n<p class=\"newsletter-widget__text\">Canada&#8217;s best source for investing news, analysis and insight.<\/p>\n<div class=\"js-replace-main\">  <small class=\"newsletter-widget__disclaimer text-size--micro\"> By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n<div class=\"js-submit-success\" hidden=\"\" id=\"submitSuccessFP_Investor\">\n<h3 class=\"newsletter__feedback--heading\">Thanks for signing up!<\/h3>\n<p class=\"newsletter-widget__text\">A welcome email is on its way. If you don&#8217;t see it, please check your junk folder.<\/p>\n<p class=\"newsletter-widget__text newsletter__feedback--last\">The next issue of Investor will soon be in your inbox.<\/p>\n<\/p><\/div>\n<p class=\"newsletter-widget__text js-submit-error\" hidden=\"\" id=\"submitErrorFP_Investor\"> We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_3\">\n<section aria-describedby=\"advertisment2227504710683464461543884164431872\" class=\"ad\">\n<p>Advertisement 3<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-3\">\n<div class=\"ad__inner__container\" data-ad=\"[[7,7],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"7x7\" data-ad-loc=\"3\" data-ad-mobile=\"[[7,7],[300,250],[320,50],[300,50]]\" data-aqa=\"advertisement\" id=\"ad-3\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p> This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>Base effects that have been working to reduce inflation could also turn against it. For example, WTI oil prices last July were more than US$100 per barrel, but fell to US$93 in August and then US$84 in September. If oil prices are higher than those levels in the months to come, something that is quite possible, where will the large drops in inflation come from?<\/p>\n<p>You also have the situation where global commodity prices have been rising with wheat, corn, cotton, sugar and cocoa up 2.5 to 5.5 per cent in July. Current prices for these items could continue to rise above last year\u2019s levels as well.<\/p>\n<p>Overall, we believe that should inflation remain persistent, institutional investors will have no choice but to once again rotate out of the high-flying, interest-rate-sensitive segments of the market, such as the Nasdaq and megacap technology companies, and back into energy and commodities.<\/p>\n<p>One way we\u2019re playing this is via Canadian energy companies, which on the whole are trading at 2.5 times cash flow and less than six times earnings. This multiple is quite something considering the megas are trading at 35 times earnings. It doesn\u2019t help that you have trillion-dollar companies such as Nvidia Corp. trading at 220 times earnings, and as if artificial intelligence will displace 50 per cent of U.S. knowledge workers by the end of 2027, according to 3Fourteen Research.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_4\">\n<section aria-describedby=\"advertisment9111469948383110174893048367939584\" class=\"ad\">\n<p>Advertisement 4<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-4\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"4\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-4\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p> This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>We like the Capped Energy index because 66 per cent of it is in four excellent companies, Canadian Natural Resources Ltd., Suncor Energy Inc., Cenovus Energy Inc. and Tourmaline Oil Corp. For some higher torque, we also own some mid-cap intermediates such as Tamarack Valley Energy Ltd., MEG Energy Corp., Whitecap Resources Inc. and Crescent Point Energy Corp.<\/p>\n<p>We think the catalyst for these stocks to get a large lift will be oil prices staying at current levels for the next few months.<\/p>\n<p>We also have a good exposure to direct commodities as well via a commodity futures fund, and the Invesco DB Agriculture Fund. Global drought conditions along with disruptions from the ongoing war in Ukraine are starting to wreak havoc on supplies of sugar, rice, wheat, corn and olives.<\/p>\n<p>Finally, we think owning some U.S. dollars is also not a bad idea as a hedge against the weakening Canadian economy, which has much greater sensitivity to interest rates than the U.S.<\/p>\n<p data-async=\"\">It will be just a matter of time before interest rates start to really impact Canadian mortgage holders, so there is a greater likelihood for the Bank of Canada to cut rates faster than the Fed. This is because Canadian mortgages have significantly lower terms, at less than five years, than the U.S., with the majority of households having locked in ultra-low rates for 30 years.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_5\">\n<section aria-describedby=\"advertisment8289273453292009484856906552967168\" class=\"ad\">\n<p>Advertisement 5<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-5\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"5\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-5\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p> This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>We\u2019re parking a large part of our U.S. cash into the iShares Floating Rate Bond ETF, which has a 6.3 per cent yield to maturity and owns short-term investment grade bonds, with two-thirds invested in bonds with less than two-year terms.<\/p>\n<section aria-labelledby=\"moreTopicLabel1808561454725360098297117755310080\" class=\"more-topic\" data-aqa=\"embed-more-topic\" data-carousel-component=\"\" data-carousel-icon-button=\"\" data-carousel-type=\"list\"> <button aria-hidden=\"true\" class=\"more-topic__button-prev\" data-carousel-prev=\"\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/> <\/p>\n<ol class=\"more-topic__items list-unstyled\" data-carousel-slide-list=\"\" tabindex=\"0\">\n<li class=\"more-topic__item\" data-carousel-item=\"\">  <picture class=\"more-topic__item-image\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Oil pumpjacks operating in Los Angeles, California. \" class=\"lazyload\" fifu-data-src=\"https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w&ssl=1\" height=\"96\" loading=\"lazy\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=96&strip=all&quality=80&sig=PoNGpyscT3UmxkhBGk2j2w,\n                                    https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=192&strip=all&quality=80&sig=OcfqYc1LPtVaKZ2dCNNI-Q 2x,\n                                    https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/no0804oil.jpg?h=288&strip=all&quality=80&sig=ZTmn6pK6BPSZOXNnIRQ5OQ 3x\" width=\"96\"\/><\/picture>\n<h3 class=\"more-topic__item-text\"> <span class=\"more-topic__item-text-clamp\"> Why now may be a great opportunity to buy energy <\/span> <\/h3>\n<\/li>\n<li class=\"more-topic__item\" data-carousel-item=\"\">  <picture class=\"more-topic__item-image\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Like driving, your investment portfolio also needs to perform at its best to get you to your destination.\" class=\"lazyload\" fifu-data-src=\"https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw&ssl=1\" height=\"96\" loading=\"lazy\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=96&strip=all&quality=80&sig=6mmhVKGLPcNEnmRpqaGTFw,\n                                    https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=192&strip=all&quality=80&sig=wgeoMRVFo4mHSS5-2gpZSQ 2x,\n                                    https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0728road.jpg?h=288&strip=all&quality=80&sig=TxDUnUYtIBgIni3xDfP18g 3x\" width=\"96\"\/><\/picture>\n<h3 class=\"more-topic__item-text\"> <span class=\"more-topic__item-text-clamp\"> Like a car, your portfolio needs regular tune-ups <\/span> <\/h3>\n<\/li>\n<li class=\"more-topic__item\" data-carousel-item=\"\">  <picture class=\"more-topic__item-image\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Traders work on the floor of the New York Stock Exchange.\" class=\"lazyload\" fifu-data-src=\"https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA&ssl=1\" height=\"96\" loading=\"lazy\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=96&strip=all&quality=80&sig=SyGEa9zqdHeMDFI1T3vruA,\n                                    https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=192&strip=all&quality=80&sig=culp_eeMXLjUcG50qFLk7g 2x,\n                                    https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/07\/no0721stocks.jpg?h=288&strip=all&quality=80&sig=Uuuai_j4E5vQj8cfS1EuVA 3x\" width=\"96\"\/><\/picture>\n<h3 class=\"more-topic__item-text\"> <span class=\"more-topic__item-text-clamp\"> Options for conservative investors who got burned by 60\/40 split <\/span> <\/h3>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/> <\/section>\n<p>Battles come and go, but betting one\u2019s portfolio on an outright win over rising prices in the near term could be a dangerous proposition. We prefer to have a bit of insurance in place in the event that the war on inflation drags on longer than many expect. As Louis L\u2019Amour famously said: \u201cVictory is won not in miles, but in inches. Win a little now, hold your ground, and later, win a little more.\u201d<\/p>\n<p><em>Martin Pelletier, CFA, is a senior portfolio manager at Wellington-Altus Private Counsel Inc, operating as TriVest Wealth Counsel, a private client and institutional investment firm specializing in discretionary risk-managed portfolios, investment audit\/oversight and advanced tax, estate and wealth planning.<\/em><\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt=\"beforeunload\" data-evt-typ=\"page_scroll\" data-evt-val=\"{\" control_fields=\"\">\n<h2 class=\"visually-hidden\">Share this article in your social network<\/h2>\n<\/section>\n<div aria-label=\"Article Comments\" class=\"article-content__widget-group article-comment\">\n<section class=\"comments__section\" data-aqa=\"viafoura-comments\" id=\"comments\">\n<h3 class=\"widget-title comments-anchor\" id=\"comments-area\">Comments<\/h3>\n<p class=\"comments__section-disclaimer\"> Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications\u2014you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings. <\/p>\n<details class=\"expansion-panel comments__section__list\">\n<summary class=\"expansion-panel__summary\">\n<h4 class=\"expansion-panel__summary-label\"> <span aria-hidden=\"true\" class=\"article-card__comment-icon\"> <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" height=\"16\" viewbox=\"0 0 20 20\" width=\"16\"><path d=\"M19.99 2C19.99 0.9 19.1 0 18 0H2C0.9 0 0 0.9 0 2V14C0 15.1 0.9 16 2 16H16L20 20L19.99 2Z\" fill=\"#555555\"\/><\/svg><\/span> <span>Join the Conversation<\/span> <\/h4>\n<\/summary>\n<\/details>\n<\/section>\n<\/div><\/div>\n\n<br \/>The war on inflation isn&#8217;t over yet, despite what some people think<\/a><br \/>\n<br \/>2023-08-14 13:55:20<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links News Investor Economy Martin Pelletier: Betting one\u2019s portfolio on an outright win over rising prices could be a dangerous proposition Published Aug 14, 2023 \u00a0\u2022\u00a0 Last updated&#8230;<\/p>\n","protected":false},"author":2,"featured_media":37455,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/08\/oilsands-vw0814.jpg?quality=90&strip=all&w=288&h=216&sig=EA_WEg4_i6_nmJgqf7pYFg","fifu_image_alt":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-37454","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/37454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=37454"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/37454\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/37455"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=37454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=37454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=37454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}