SocGen Recommends 7 Inflation Hedges as Fed Holds Rates and Core PCE Stays Above 3%
Updated
Updated · Business Insider · Jul 31
SocGen Recommends 7 Inflation Hedges as Fed Holds Rates and Core PCE Stays Above 3%
2 articles · Updated · Business Insider · Jul 31
Summary
Seven trades — led by TIPS, copper and gold — were laid out by SocGen as protection against a hotter US inflation backdrop after the Fed held rates steady.
Core PCE is expected to remain above 3% in 2026, the bank said, with tariffs, Iran-war oil volatility, AI and infrastructure spending, and large fiscal deficits reinforcing inflation persistence.
TIPS remain SocGen’s preferred direct hedge, while copper is its “real-economy” inflation play; the bank also favors commodity-linked and equal-weight US stocks over tech-heavy benchmarks.
European sovereign bonds, bank and utility stocks, plus private credit round out the trade, with SocGen citing improving EU fiscal fundamentals and floating-rate income as added protection in a higher-for-longer rate environment.