Investors should be hedging inflation risk right now, says T. Rowe Price's Sébastien Page

• Record highs are not sell signals, and S&P 500 earnings growth is strong at 27% (vs. 13% expected).
• Neutral on stocks vs. bonds, taking profits on the 'broadening trade', and hedging inflation risk.
• Recommends US large-cap growth stocks due to strong earnings and valuations below historical averages, alongside diversified inflation hedges like cash, TIPS, commodities (energy, metals stocks), and hedged equity.

T. Rowe Price's Sébastien Page believes the market is not 'over its skis' despite record highs, citing strong earnings growth. However, he emphasizes the critical need to hedge against inflation, which he expects to be 'meaningfully worse' than current market expectations, driven by supply shocks in energy and fertilizer.