Inflated expectations
It may seem counterintuitive, given these deflationary times, but inflation-linked fixed income strategies are proving a hit with investors as fiscal stimulus raises the threat that inflation will take over in the medium term. William Rhode reports
It seems that everyone is worried about inflation these days. In the US, the University of Michigan's latest reading of consumer sentiment showed expectations for inflation over the next year rising in April to 3%, from 2% in March. Warren Buffett, the billionaire chief executive officer of Berkshire Hathaway, said in March that stimulus efforts "will probably cause a lot more inflation". And Chris Caltagirone and Bob Greer of fixed income investor Pimco said in a March 10 report that "inflation
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