Page 31 - LIN DEC WEB

Insights from Tom Moran,

Founder, Chief Executive Officer,

Senior PIM Portfolio Manager, Moran Wealth Management

n my recent conversations with clients, there was one topic Please talk to your Financial Advisor or give us a call to discuss
that seemed to be at the forefront of everyone’s mind — your situation and pursuit of strategies designed to protect your
Iinflation. While there are overt signs that inflation is here, portfolio from inflation. One option is to invest in equities with
the question remains if it will stay. Earlier this year, the Federal strong dividend history and a healthy balance sheet. Historically,
Reserve and Jerome Powell insisted that inflation is merely dividends have risen faster than the rate of inflation, acting as a
transitory due to the unwinding of the pandemic. They recently, much-needed hedge against inflationary pressure. Many dividend-
however, started to change their tune suggesting that inflation oriented companies are also value stocks, so we anticipate value
may be more persistent. In order to evaluate whether inflation is stocks continuing to outperform growth stocks in the short
here to stay, we need to take a step back and look at why we are and medium-term. When inflation increases above 4%, equities
experiencing inflation in the first place. traditionally start becoming less favorable for investors than other
Broadly stated, inflation is a sustained rise in prices caused by asset classes. If this is the case, we recommend clients discuss
more dollars chasing the same amount of goods and services. In other investment options depending on their situation and what
the depth of the crisis, the Fed provided liquidity to the financial is most appropriate for them. At Moran Wealth, we offer multiple
system and the U.S. government passed truly enormous amounts proprietary Private Investment Management (PIM®) portfolios
of fiscal stimulus to both companies and the American consumer. that may be appropriate for clients wanting to protect their assets
Those actions prevented a greater economic crisis and enabled against inflation, for which they are designed to do. In order to
a rapid recovery. Demand is back—and expected to grow—but evaluate your portfolio today for its sensitivity to inflation, please
you can’t restart an entire economy overnight. The disrupted reach out to set up an appointment with one of our financial
supply chains and labor shortages are still sorting themselves out, advisors.
causing wild price movements for goods and commodities such P: 239-393-8076 | F: 239-431-5239
as used cars, coffee and lumber; shortages for everything from
Thomas.Moran@MoranWM.com | www.MoranWM.com
semiconductors to caramel syrup. Even Dollar Tree is raising their 5801 Pelican Bay Blvd, Suite 110, Naples, FL 34108
prices on some items above $1. However, this chaos in supply
chains should eventually calm, restoring a measure of normality
to the prices of many goods. Chairman Powell is likely referring
The PIM program is not appropriate for all investors. Please carefully review
to this process when he talks about currently elevated inflation
the Wells Fargo Advisors advisory disclosure document for a full description
readings being “transitory.” The elephant in the room is whether of our services. The minimum account size for this program is $50,000.
the Fed’s actions on monetary policy have the potential to create
lasting inflation that can negatively impact the markets and the Investment products and services are offered through Wells Fargo Advisors
Financial Network, LLC (WFAFN). Moran Wealth Management is a
broader economy for years to come.
separate entity from WFAFN. 1021-03944

Life in Naples | December 2021 31