Investors should be hedging inflation risk right now, says T. Rowe Price's Sébastien Page
Speakers
Sebastien Page
— CIO & Head of Global Multi-Asset, T. Rowe Price
Summary
Sébastien Page advises hedging inflation risk while staying invested in U.S. large cap growth stocks. He expects inflation to worsen and recommends TIPS, energy and metals stocks as hedges. He notes attractive valuations and strong earnings for large cap growth.
- Market at record highs but not a sell signal.
- Page expects inflation to be worse than market expects.
- He recommends hedging inflation risk with TIPS and commodity stocks.
- He is moving money into U.S. large cap growth stocks.
- Large cap growth valuation below 5-year average.
- Earnings growth running at 27% vs expected 13%.
- Oil supply shock contributing to inflation.
- Treasuries unlikely to rally if inflation worsens.
Trade Ideas
Long U.S. large cap growth stocks
U.S. large cap growth stocks are attractive because their valuation is below the historical five-year average, the Mag-7 valuation is well below its peak, and forward earnings are at the highest in 25 years. These stocks tend to beat high earnings expectations, making them the best way to express the AI trade. The firm is moving money from non-U.S. stocks into this area.
Buy TIPS for inflation protection
TIPS are a key inflation hedge because Treasuries will not rally if inflation gets worse than expected. The firm holds TIPS as part of a diversified hedge portfolio.
Buy energy and metals stocks
Energy and metals stocks are preferred ways to get commodity exposure as an inflation hedge, given the oil supply shock and the need to diversify hedges beyond Treasuries.
Up Next
This CNBC video, published May 13, 2026, features Sebastien Page discussing QQQ, TIP, XLE, Metals stocks. 3 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Sebastien Page · Tickers: QQQ, TIP, XLE, Metals stocks