Houston, TX (PRWEB) November 23, 2010
ArborInvestmentPlanner.com, an investment management service for the self directed investor, released a special report today detailing the effects of Biflation, a word used to describe deflation and inflation simultaneously in different assets. The report, entitled "Inflation and Deflation Produce Biflationary Economies", details the effect Biflation is having on world economies and how to profit with portfolio asset allocation changes.
Ken Faulkenberry, principal and investment management expert of Arbor Investment Planner, authored the report which cites that, “because of Biflation, investors should examine their portfolio asset allocation philosophy and make adjustments to the new reality.”
The report goes on to caution that “deflationary assets should be avoided. This includes companies with too much debt or that sell products that usually require debt. With consumers cutting budgets, and credit being tight, high ticket items that require financing struggle to increase sales. Financial institutions holding loans secured by assets that are falling in value present a risk and should be avoided.”
With an eye toward the global impact of biflation, the report informs investors that “inflationary assets should be over weighted in investment portfolios. Items that have worldwide appeal are in demand by growing middle classes around the world. Hard assets are demanded by emerging and frontier markets and being pursued with the increased liquidity provided by central banks.”
“The key to Biflation is to own those assets that are rising in price and avoid the assets that are experiencing deflationary pressures,” concludes the special report. “The concept of Biflation makes asset allocation critical to portfolio diversification. Without an active asset allocation strategy an investment portfolio will not have the continuous management of market exposure needed for the fast moving world we live in today.”
Faulkenberry encourages investors, “Stay ahead of the trends and examine the performance of the Arbor Asset Allocation Model Portfolio (AAAMP). The AAAMP is for the self directed investor who desires an asset allocation portfolio, specific trade alerts, and updates with analysis.”