MarketWatch: Michael Landsberg: Investors Should Brace for Inflation Pressures Ahead

October 31, 2024

Following Thursday’s PCE report showing a 0.2% rise in prices for September, Michael Landsberg, Chief Investment Officer of Landsberg Bennett Private Wealth Management, cautioned that investors should prepare for further inflationary pressures in the coming months.

He pointed to elevated commodity prices, rising shipping costs in China, and increased wages as factors likely to push inflation higher in the near term, suggesting that “higher for longer” rates may be on the horizon.

After the recent tech earnings, Landsberg noted the importance of reassessing tech positions, suggesting that it “makes some sense to trim some from those names that have worked so well over the past 12-18 months and look for [artificial-intelligence] laggards” as well as other tech sectors such as cybersecurity, robotics, automation, and smart infrastructure.

Key Takeaways:

  1. Upcoming Inflation Pressures: Investors should anticipate continued inflation, driven by rising commodity prices, shipping costs, and wages, which could sustain “higher for longer” rates.
  2. PCE Index Data: The PCE reading showed a monthly increase of 0.2% in September, underscoring potential inflationary persistence.
  3. Reassessing Tech Holdings: Landsberg suggests reevaluating tech investments, particularly those with recent gains, while exploring growth potential in areas like AI laggards, cybersecurity, robotics, and automation.

With inflationary pressures expected to persist, Michael Landsberg’s insights highlight the importance of maintaining a diversified portfolio that can withstand potential rate hikes.

As economic trends evolve, focusing on a balanced approach may help investors navigate the “higher for longer” inflation landscape.

Learn more here: https://www.marketwatch.com/livecoverage/stock-market-today-dow-futures-slide-as-meta-and-microsoft-earnings-weigh/card/investors-should-brace-for-inflation-pressures-ahead-says-cio-diSs1QTmyetJZu1ro0gU

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