The Case for Investing in Real Assets Amid Inflation Concerns

August 23, 2025 - 18:25

Jeff Palma, the head of multi-asset strategies at Cohen & Steers, is making a compelling case for investing in "real assets" as inflationary pressures are expected to rise. Palma suggests that the implementation of tariffs could contribute to an uptick in inflation, leading to a favorable environment for real assets, which include tangible items such as real estate, commodities, and infrastructure.

Real assets are often seen as a hedge against inflation, as their value tends to increase when the cost of living rises. Investors looking to diversify their portfolios may find opportunities in sectors like real estate investment trusts (REITs), precious metals, and energy resources.

Palma's insights underscore the importance of adapting investment strategies in response to economic shifts. As inflation becomes a growing concern, understanding how to effectively incorporate real assets into investment portfolios could be crucial for achieving long-term financial goals.