Stocks of companies with pricing power should form the core of any portfolio

Equities and bonds are down sharply, a global recession is likely at the end of the year, and inflation has proved to be more than just a temporary problem, but one that will last for a while. This is not an easy environment for investors, said Till Christian Budelmann, Chief Investment Officer at the Swiss private bank Bergos. In his opinion, however, a flight to cash is not a good strategic option, as that would amount to value destruction in these inflationary times. Instead, investors should focus on solid quality companies that are able to pass on higher costs to their customers.(..)