Deep Dive: 'Allocators face a tricky choice this year'

Don't stray too far from the index

clock • 3 min read

Cormac Nevin, a fund manager at YOU Asset Management, deep dives into US equities

If at the stroke of midnight on 31 December 2020, you experienced a Moët-induced epiphany that US CPI would finish the coming year at 6.8% and Core CPI would be at 4.9% you would reasonably conclude that you could formulate a successful investment strategy to take advantage of your clairvoyance and retire to the beach for the rest of the year.  Upon your return, you may be quite surprised to learn that the ten-year US Treasury yield is at 1.5%, real rates remain near record lows with the five-year TIPS yield at -1.54% and US unemployment is at 4.2%. You would likely be equally surpris...

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