News Analysis Investors may soon need stagflation strategies, veteran advisers say. Stagflation, an economic climate in which growth rates are sluggish and inflation is high, requires certain defensive stock market strategies, according to a Florida adviser. “Now is not the time for a low-cost strategically diversified portfolio. This market is long in the tooth and there are many underlying factors that could cause a correction or pullback,” according to Matt Chancey, an adviser in Tampa. He and other veteran investment professionals warn that stagflation can be brutal. “I was a teenager and college student during the late 70s, early 80s stagflation. It was terrible,” says Mike Whitty, a Chicago adviser, who is cautious. “I’m anticipating a significant market correction, so I would not go all-in on the stock market right now,” he says. If stagflation returns, some investments can ease the pain. According to investment advisers, pain relief includes certain bonds …
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