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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 that Please talk to your Financial Advisor or give us a call to discuss
seemed to be at the forefront of everyone’s mind — inflation. your situation and pursuit of strategies designed to protect your
IWhile there are overt signs that inflation is here, the question portfolio from inflation. One option is to invest in equities with
remains if it will stay. Earlier this year, the Federal Reserve and strong dividend history and a healthy balance sheet. Historically,
Jerome Powell insisted that inflation is merely transitory due to dividends have risen faster than the rate of inflation, acting as a
the unwinding of the pandemic. They recently, however, started to much-needed hedge against inflationary pressure. Many dividend-
change their tune suggesting that inflation may be more persistent. oriented companies are also value stocks, so we anticipate value
In order to evaluate whether inflation is here to stay, we need to stocks continuing to outperform growth stocks in the short
take a step back and look at why we are experiencing inflation in and medium-term. When inflation increases above 4%, equities
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 Tom Moran
as used cars, coffee and lumber; shortages for everything from Founder, Chief Executive Officer, Senior PIM Portfolio Manager
semiconductors to caramel syrup. Even Dollar Tree is raising their P: (239) 920.4440 | F: 239-431-5239
prices on some items above $1. However, this chaos in supply Thomas.Moran@MoranWM.com
chains should eventually calm, restoring a measure of normality www.MoranWM.com
to the prices of many goods. Chairman Powell is likely referring 5801 Pelican Bay Blvd, Suite 110, Naples, FL 34108
to this process when he talks about currently elevated inflation
readings being “transitory.” The elephant in the room is whether The PIM program is not appropriate for all investors. Please carefully review the Wells Fargo
the Fed’s actions on monetary policy have the potential to create Advisors advisory disclosure document for a full description of our services. The minimum
account size for this program is $50,000.
lasting inflation that can negatively impact the markets and the
broader economy for years to come. Investment products and services are offered through Wells Fargo Advisors Financial
Network, LLC (WFAFN). Moran Wealth Management is a separate entity from WFAFN.
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