'INVESTING IN A TIME OF WAR': Key strategies for success

• Current economic conditions, including tax cuts and defense spending, mirror the 1960s 'guns and butter' period, leading to inflationary pressures.
• Deglobalization is reversing the disinflationary trend of increased competition, now putting upward pressure on prices.
• Investment strategy should shift towards shorter time horizons, favoring dividends over long-term growth in equities, and commodities/real assets. In fixed income, short-term, high-quality assets like mortgages, munis, and treasuries are preferred over long-term bonds.

Richard Bernstein discusses investment strategies during times of conflict and rising inflation, drawing parallels to the 1960s 'guns and butter' era. He highlights deglobalization's inflationary impact and advises investors to shorten time horizons, focus on dividends and commodities in equities, and prefer shorter-term, higher-quality fixed income.