Strategic Asset Allocation for an Inflationary Market Winter

Can oil provide shelter from the storm?

We are deep within an inflationary market winter, the likes of which we haven’t seen since the early 1980s. A market winter is an extended period of poor expected returns on the market portfolio. Since last September, when the inflation problem began to sink in, large-cap US equities are down 2.1%, while small-cap US stocks are down 11.8%. US Treasuries…