This time last year Tamar Hamlyn shared with Livewire that inflation and volatility charts were the ones he was watching closely. Tamar now shares his thoughts of what to expect from here and what investors can do about it.
A notable theme over the past few years has been the dramatic flattening of breakeven inflation curves.
Psychologist Daniel Kahneman Kahneman, together with his late colleague Amos Tversky, explored the many cognitive biases that impair human decision making, particularly in relation to uncertain events, and coined the acronym WYSIATI – What You See Is All There Is.
Whilst current inflation is low, so are the returns on many low risk assets. This means inflation can still absorb a large part of returns and historically, this can be quite unpredictable.