What inflation wary ASX investors need to know about TIPS
Bernd Struben | May 17, 2021 4:06pm Image source: Getty Images
ASX investors are waking up to the possibility that maybe, just maybe, inflation won’t remain humbly muted for as long as the world’s central bankers are forecasting. A scenario that could see interest rates rising sooner than promised.
Along with launching a massive quantitative easing (QE) program, the Reserve Bank of Australia (RBA) joined the US Federal Reserve and other leading central banks in slashing interest rates to near zero in an effort to revive economies knocked down by the global pandemic.
Yes, Inflation Is Really Back | Opinion Connel Fullenkamp
, Professor of the Practice of Economics, Duke University On 5/17/21 at 7:30 AM EDT
Never turn your back to the ocean it s a phrase that generations of parents have used to help their kids stay safe on the beach. But this simple instruction also has a deeper message: Don t lose respect for something powerful that you can t predict or control. If you do, you could suddenly find yourself drowning.
Unfortunately, we ve turned our backs to inflation during the past decade, and we re about to relearn a painful lesson about respect. The Fed and the Biden administration are dismissing the latest inflation data, claiming that the jump in prices is merely temporary. Besides, they continue, it will be good to let the economy run hot for a while. In other words, don t worry higher inflation won t be a big deal.
With Inflation, Failure to Prepare Is Preparing for Trouble etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.
US investors grappling with stock volatility and evidence of inflation say have been positioning themselves for more unexpected kinks in the road to recovery.
Analysis: U.S. investors looking for protection as inflation pressures bubble, stocks volatile
05/14/2021 | 01:48am EDT
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NEW YORK (Reuters) - U.S. investors grappling with the latest stock volatility and evidence of inflation say they have been positioning themselves for more unexpected kinks in the road to recovery.
The moves to hold assets that could withstand a prolonged surge in inflation come as data earlier in the week showed U.S. consumer prices rose by the largest amount in 12 years in April in a jump that was well above Wall Street s expectations. Bottlenecks in global supply chains and scarcity in the labor market were among the reasons for the surge in prices, Labor Department data showed.