New York Life Investments CEO reveals top inflation protection play
Yie-Hsin Hung, New York Life Investment Management CEO
Inflation will persist and add risk to the market, but one asset class could be a long-term ride, Yie-Hsin Hung, chief executive of New York Life Investment Management, said Wednesday.
Hung spoke at CNBC’s Delivering Alpha investor conference. “Interest rates, inflation will persist at levels higher than what we saw before the pandemic. It’s going to cause volatility and market,” Hung explained.
Hung’s comments come after Federal Reserve Chair Jerome Powell said this week inflation could last longer than expected as supply bottlenecks and other Covid-related issues continue to push prices upward. The latest consumer price reading in August showed year-over-year inflation at its hottest level in more than a decade.
Investors were advised by the asset manager to move their portfolios into categories that offer income protection and inflation protection.
Hung emphasized infrastructure both private and listed as her best play against rising prices.
Hung explained that this asset type is long in duration and has inflation properties.
Hung noted infrastructure should get a boost from Washington with lawmakers poised to pass a $1 trillion stimulus bill.
Shundrawn Thomas, Northern Trust Asset Management President
Northern Trust Asset Management President Shundrawn Thomas, who joined Hung at the Delivering Alpha summit, said he views shaky periods in the market as a potential buying opportunity.
Thomas added that “We remain constructive on risk assets.” “We don’t have a problem with the inflation and near-term risk…We view that as an opportunity to buy if we do see a meaningful sell-off within the immediate time frame.”
Sara Eisen of CNBC moderated a discussion about the future wealth management. Thomas and Hung discussed digitization, democracy and diversity as they relate to the management sector.