CalPERS CIO: Inflation Is Impacting the Portfolio

The video discusses the impact of inflation and interest rates on investment portfolios. It highlights the challenges of achieving desired returns in a high-inflation environment and the importance of considering infrastructure as a protective asset class. The discussion also covers the interest rate environment and the strategy of maintaining a long-term investment focus rather than attempting to time the market.

How does high inflation affect investment returns?

• It guarantees higher returns in the long run.

• It makes it harder to achieve desired returns.

• It has no impact on investments.

• It increases the rate of return.

Why might infrastructure be considered a valuable asset class during high inflation?

• It is unaffected by inflation.

• It offers inflation protection.

• It is the most volatile asset class.

• It has the highest returns in all conditions.

What is the impact of the interest rate environment on investment portfolios?

• It decreases the cost of capital.

• It has no effect on asset classes.

• It only affects short-term investments.

• It changes the cost of capital across asset classes.

How do investors approach interest rate changes according to the video?

• By making short-term predictions.

• By focusing on long-term strategies.

• By ignoring interest rate changes.

• By trying to time the market.

What is considered the 'North Star' for long-term investors?

• Market timing

• Short-term gains

• Strategic asset allocation

• Interest rate predictions