The story being told by fund selectors is one of a goldilocks economy being a distant prospect, with fixed income allocations positioned to cater to all bear cases of inflation and growth running either too hot or cold.
In late September, the BlackRock Investment Institute doubled down on its full support of the ‘too hot’ camp. After several central banks chose to keep interest rates neutral at recent policy meetings, the world’s largest asset manager maintained its forecast of higher rates for longer and called on the Federal Reserve and its counterparts to “keep a lid on growth to avoid resurgent inflation”...
This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.
