Christian Mueller-Glissmann of Goldman Sachs said rising inflation may make real assets a more attractive hedge for investment portfolios.
This shift in allocation strategy is critical as geopolitical instability threatens to diminish the purchasing power of traditional safe-haven assets. Investors facing volatile markets must determine if cash and bonds still provide adequate protection or if tangible assets are required to maintain value.
Mueller-Glissmann, the head of asset allocation research at Goldman Sachs, said the relationship between inflation and real-asset allocations in a CNBC interview on April 8, 2026 [1]. He said pressures stemming from the conflict between the U.S. and Iran could push inflation higher within the United States [2].
According to the firm, these inflationary pressures can erode the real returns of cash and bonds. Real assets, which typically include commodities, real estate, and infrastructure, often maintain their value better during periods of rising prices. This makes them a strategic component for diversifying risk when currency value drops.
Looking at the broader market, Goldman Sachs expects global equities to deliver returns in 2026 [3]. While these returns are projected to be lower than in previous periods, the firm said they are still attractive [3].
Market sentiment regarding the future of these equities remains divided. Following a two-week cease-fire, some indicators suggested continued upside for the market rally [1]. However, other analysts, including those at Morningstar, said that a market pullback is more likely than a continued rally [1].
Mueller-Glissmann's analysis emphasizes the need for a balanced approach to asset allocation. By integrating real assets, investors may mitigate the risks associated with the economic fallout of geopolitical strife, specifically the risk of persistent inflation that outpaces the yield of fixed-income securities [2].
“Inflation could rise higher in the United States due to the Iran war”
The recommendation to pivot toward real assets reflects a growing concern that geopolitical conflict is becoming a primary driver of macroeconomic instability. If the U.S.-Iran conflict sustains inflationary pressure, traditional 60/40 portfolios relying heavily on bonds may underperform. This suggests a broader institutional shift toward 'hard assets' to protect capital against currency devaluation and systemic geopolitical shocks.
