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.
We hold an allocation to inflation-protected securities, primarily through US TIPS. We believe the US economy will reflate beyond recent trend growth but fall short of pre-crisis levels. Inflation maybe even run a little bit hotter than the Federal Reserve target.
We believe the bias remains for higher real rates over the coming 12 months, due to three factors: higher economic growth expectations, higher inflation expectations and an increase in risk premia.
Tags: Inflation | Neuberger Berman
