Investing to deal with inflation

The fastest inflation in nearly four decades has reached "excessive" levels, partly because of the stimulative monetary policy used to support the epidemic economy.

Oaktree Capital is the world's largest non-performing asset investment institution, with an asset management scale of US$140 billion. Its founder, Howard Marks, is known as the "King of Distressed Asset Investment". subprime mortgage storm.

For the Federal Reserve to raise interest rates to control prices, Marx believes this is the right choice, although higher borrowing costs will slow the economic recovery.

The Fed already missed an opportunity to raise rates in 2018 and backed off in the face of falling markets, but this time the Fed should not miss another chance to get rates back up because of fears of a "taper tantrum."

That doesn't mean investors should dump their existing portfolios, he added. He suggested that investors worried about inflation could use assets such as variable-rate debt and real estate to combat inflation.