Citywire's Wealth Manager: Eight wealth managers on 'calling the toss of the inflation coin'
Everyone in the industry is discussing it, but some are more fearful than others; we asked eight fund selectors to tell us how much they are concerned about the threat of inflation.
by Ross Miller
Posted 19 February, 2021
Signia's Gregoire Sharma, Fixed income fund analyst, comments:
The V-shaped pickup in inflation expectations isn't surprising given the low base of inflation which followed the recession in March 2020. However, with the economy digging itself out of a Covid-induced proverbial hole, we believe policy makers are reticent to apply the brakes on accommodative policy - especially since a sustained rise in inflation was touted for most of the last decade but never materialised.
One of our top ten themes for 2021 is for higher inflation - but not high inflation. Indeed, we have been positioned accordingly to benefit from a near-term rise in inflation expectations through our 2s10s yield curve steepener, our exposure to cyclical stocks which outperform in reflationary environments and a long position in gold as an inflationary hedge.
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