BALADO. Fears of inflationary pressures have shaken stock markets since April figures in Canada and the United States.
The main effect of inflation is to erode the value of short-term portfolios.
Vincent Fournier, portfolio manager at Claret, explains that while inflation harms the value of stocks in the short term, it also has a positive effect in the longer term. The best way to protect investments against inflation is, therefore, according to him, to invest in common stocks.
Mr. Fournier also says he does not fear possible galloping inflation, believing that the government assistance programs put in place since the pandemic’s start will cease as soon as the economic situation allows it.