Multi-asset veteran David Jane is running a bias towards gold and index-linked bonds following the resolution to the eurozone debt crisis, warning the move by EU leaders will stoke inflation.
Jane, running the TM Darwin Multi Asset fund, is expecting inflation across the West to spike after leaders agreed to expand the region's bailout fund and recapitalise banks. “Throwing ever more money at the problem may in the long run stoke inflation, although in the short run it helps halt the slide in confidence caused by the authorities’ inaction,” he said. “For this reason we will retain our exposure to index-linked bonds and gold to cover the risk inflation takes hold in Western nations. We expect inflation to continue to remain a concern." The deal has lifted equity markets ...
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