As grandees of the investment world fall over themselves to warn of long-absent inflation up ahead, financial markets appear ever calmer about the risks of that new regime unfolding.
6 Min Read
LONDON (Reuters) - As grandees of the investment world fall over themselves to warn of long-absent inflation up ahead, financial markets appear ever calmer about the risks of that new regime unfolding.
Gas prices are seen after U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve s 2% target, in Beverly Hills, California, U.S., June 2, 2021. REUTERS/Lucy Nicholson
Is the post-pandemic inflation scare over already?
Thursday will likely see the United States record the highest consumer price inflation rate in 13 years - just shy of 5% - and the fastest rate since 1993 if food and energy prices are cut out.
Here in Scotland, hilarity greeted Standard Life Aberdeen plc’s rebranding as Abrdn plc. “Mdnss” tweeted Graeme Smith, former editor of Glasgow-based paper the Herald, summing up reaction in the financial services goliath’s homeland.
Significant pushback expected as Biden backs suspending patents on Covid vaccines
Events
If you already have an account please use the link below to sign in.
If you have any problems with your access or would like to request an individual access account please contact our customer service team.
Healthcare industry facing moral dilemma
How will Biden s decision on vaccine IP rights impact healthcare stocks?
Anna Fedorova
Many are predicting a bright future for biotech firms involved in the production of Covid-19 vaccines as they are rolled out across the globe, but US President Joe Biden s proposal that vaccine producers should temporarily waive patent protection has dampened this rosy outlook and is likely to result in significant pushback from firms in the sector.
Some investors try to turn these cycles to their advantage by systematically selling their winners and buying their losers. In other words, selling high and buying low. It sounds like a recipe for success but like everything in investing, tricky to get right in practice.
Right now, that would mean selling expensive US stocks, particularly in the technology sector, and piling into underperforming regions such as the UK and Europe.
High valuations in key markets mean that we are in a new “cycle” and investors need to reposition themselves, says Joe McDonnell, Neuberger Berman’s head of portfolio solutions EMEA. “We support continued cyclical rebalancing, and this should be relatively positive for the UK, Europe and Japan, versus the US.”