Combatting the inflation threat
By International Adviser, 5 Jul 18
Investors need to be focusing more attention on the potential for rising rates – both inflation and interest – and the implications for fixed income portfolios as global economic growth conditions continue to improve, says Neuberger Berman’s Jon Jonsson.
Our portfolio continues to have negative headline duration, as we continue to see more opportunities in the reflationary stories across developed markets.
The strong fundamentals including job growth, corporate profits expansion, corporate and consumer confidence remain in place to support the strong synchronised global expansion.
While monetary policies are on course for gradual normalisation, and volatility has picked up from its extremely low levels, overall financial conditions remain very accommodative. Importantly, fiscal policies have become expansionary.
Technicals also turn negative as we transition from bond shortage to bond surplus as central bank balance sheet expansion comes to an end.
Tags: Inflation | Neuberger Berman
