Livewire Exclusive – 2018’s most crowded trade
It started out as a whisper in early 2017, but by early 2018, it had reached a roar: “inflation is coming,” they yelled. After a decade mired in sub-par growth and near-zero interest rates, consensus agreed things were returning to normal. Portfolios repositioned, and rate-sensitive stocks repriced. But nearly six months later, the ‘whites in the eyes’ of inflation remain unseen. The German economist, Rudi Dornbusch once said; “the crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.” Could the same be said of inflation? Or will ‘lower for longer’ prevail? To find out, we asked three leading fixed income specialists, Charlie Jamieson from Jamieson Coote Bonds, Tamar Hamlyn from Ardea Investment Management, and Chris Rands from Nikko Asset Management.
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