Page 36 - Investment Advisor March 2022

Conclusions

PORTFOLIO PERSPECTIVES
By Jane Wollman Rusoff

Get Ready for ‘Sticky’ Inflation, a Top

Investing Consultant Warns

Maria Fiorini Ramirez gives Investment Advisor her economic forecast for
the year and discusses why she thinks stocks will rise 15%.

in business administration/economics.
Before working for six years at Drexel
Burnham Lambert, she was with Merrill
Lynch for a decade as a fixed income
market analyst. In 1992, she founded her
own independent firm after two years
as a wholly owned subsidiary of John
Hancock Freedom Securities.
Here are excerpts from our
conversation:

Investment Advisor: Do you foresee
nflation has been worrisome for invest in securities, largely short-term inflation going down; and if so, when?
Maria Fiorini Ramirez for the last bonds and new issues. MFR Securities Maria Fiorini Ramirez: No. I don’t see
Itwo years, ever since the coronavi- is her BD for large institutions, states it going down at all. Inflation will stay
rus pandemic began causing disruptions and municipalities, for which it provides very sticky — like Krazy Glue. Prices may
in the economy. Now the financial ser- research, advice and execution. adjust a little bit when the [economic] dis-
vices veteran argues: “Inflation will stay In the interview, Ramirez is upbeat ruption comes to an end. But once mini-
very sticky — like Krazy Glue. We have on the stock market mainly because mum wages and other compensation go
yet to see all the price pressure work its an end to the supply-chain disruption up, they don’t come down because insur-
way through the system. The pace may “will boost stock prices,” she says. As for ance premiums go up. Everything goes up.
come down two years from now,” she the prospect of interest rate hikes, the The pace of inflation acceleration
told Investment Advisor in January. Federal Reserve and other central banks may come down two years from now.
Once dubbed “The Fed Psychologist” globally are “way behind in their ability But we’re far from that. We have yet to
for her astute analysis of Federal Reserve to bring interest rates closer to inflation see all the price pressure work its way
moves and international monetary poli- rates,” she contends. through the system. It’s going to take at
cy, Ramirez is president and CEO of She spoke no English when, at age 14, least another year.
Maria Fiorini Ramirez, an independent Ramirez and her family immigrated to
global economic and financial consult- the U.S. from a small town near Naples, Were you surprised when inflation started
ing firm based in New York City, with Italy. Her first step into financial services to rise so fast, or were you expecting that?
offices in Florida and California. was a clerking job at American Express We’ve been worrying about rising infla-
Her MFR Research helps clients, like Banking Corp. Evenings, she attended tion for two years now because of dis-
the state of California and New York City, Pace University, where she earned a B.A. ruptions in economic activity when

34 INVESTMENT ADVISOR MARCH 2022 | ThinkAdvisor.com