CAPITAL ANALYTICS ASSOCIATES – No matter the industry, conversations around inflation are much more prevalent. Experts are now weighing in on if, when and how bad it could be. Even with the long-standing ramifications still being unclear, the challenges are being felt.
Client anxiety is rising and financial managers are working to keep those fears to a minimum. San Antonio’s industry experts are beginning to make adjustments to investments to reduce the impact of record inflation – and the actions by the Federal Reserve – on their client’s portfolios.
Crossvault Capital Management switched from cyclical stocks to dividend-paying stocks in 2021. As an economic slowdown became more imminent, Crossvault began to build up cash positions. Similarly, San Antonio-based U.S. Global Investors also announced it would adopt a policy of building up cash in anticipation of a recession.
1900 Wealth has a slightly different approach, putting an emphasis on dividend-paying stocks. The firm believes they are more attractive than value stocks and yield better cash flows, and that growth stocks have been overvalued.
According to the Bureau of Labor Statistics, the Consumer Price Index reported an increase of 9.1% in June compared to the same month a year ago. This marks the largest year-to-date increase since 1981, and many believe it is an indication that the Federal Reserve will continue raising interest rates by 75 to 100 basis points.
Rising inflation has also led to rising housing costs across the country. San Antonio is no exception as rents have been on the rise since the beginning of the year, and a new report from Redfin puts the Alamo City among the top 10 cities with the fastest rising rents.
According to the report, apartments and other rental properties in San Antonio saw the asking monthly prices increase by 23.4% year over year. That increase brings the median monthly rent to $1,501 and puts San Antonio in the No. 10 spot on the list. The report also lists Austin at No. 3, boasting a 32% increase in the median monthly rent to $2,505. That has sparked a trend of people from Austin looking to now move to San Antonio, and not necessarily by choice but out of necessity.
As the U.S. continues to battle inflation, organizations will continue to look for ways to ease the burden felt on their clients. “The past year has shown what companies like ours can and must do to serve our customers, clients and communities by bringing together the best of our business to help address significant economic and societal challenges,” said Jamie Dimon, chairman and CEO of JPMorgan Chase in a statement.
