Too little, too late? Fighting inflation concerns now may be a futile endeavour

Well constructed portfolio key to addressing issues

clock • 3 min read

Governments won't admit it, but they have been attempting for the past decade to stimulate inflation in the developed world as a means of easing their massive debt burden.

But inflation has proven highly elusive, suggesting that disinflation risks continue to be present in markets.  While there has been upward movement in US inflation rate expectations in recent months, as measured by the ten-year breakeven inflation rate, nevertheless, the expectation remains within the range exhibited since before the global financial crisis:  Really, it's anybody's guess, and the current pandemic has a habit of producing unpredictable outcomes, so what should investors look out for and should they react? Market reaction If inflation were to appear it is unlikely...

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