Inflation has bounced back vigorously from its pandemic-era lows: The headline rate for the US consumer price index has reached a 40-year high, while in the eurozone, the headline rate for the harmonised index of consumer prices is at its highest in 20 years. What does this mean for investors?
Listen to this Talking heads podcast with head of inflation Jenny Yiu and chief market strategist Daniel Morris as they discuss ‘The inflation revival.’ Co-authored by Jenny Yiu, this paper reviews historical inflation trends before outlining our near-term outlook as well as the longer-term catalysts for an inflation revival.
Jenny also explains the importance of managing inflation risk and the role inflation-linked bonds can play for fixed income investors seeking a solution to hedge against inflation.
Formerly known as ‘Market weekly’, Talking heads brings investors the in-depth insights on topics that really matter to them, analysis of the world and markets through the lens of sustainability and more great conversations with investment experts.
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience.
Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.