Meet our leaders
April 21, 2022
Amid a period of high inflation, Vanguard Global Chief Economist Joe Davis discusses the importance of staying the course and balancing inflation concerns with a long-term investment focus.
Producer: How’s it going?
Joe Davis: Hi everyone. It’s going well. We’ll see how well I do on the short and sweet (laugh).
Question (on-screen): How should investors respond to inflation?
Joe Davis: Inflation is the biggest question I get today. It shouldn't be a problem, or it won't be a problem if policymakers keep it under control. I think for long-term investors, the appropriate response is really staying the course. Over long periods of time, stocks and even high-quality bond investments have returns higher or in excess of inflation. And so that’s the really key point to keep in mind in today’s environment.
All investing is subject to risk, including the possible loss of the money you invest. Investments in bonds are subject to interest rate, credit, and inflation risk.