The absolute return sector has always had its critics and, in the case of several participants in the sector, rightly so. But in a year that looks set to challenge both equity and fixed income markets, could the strategy come back into its own? Sam Liddle looks at the issues
Sam Liddle: The multi-asset recipe for when inflation heats up
Don t open the oven door
Sam Liddle:
Sam Liddle explores how to manoeuvre multi-assets around inflation risk this baking themed article for Professional Adviser
UK inflation reached 0.7% year-on-year in January, according to data released in April, with concerns mounting for a higher reading in the next couple of months.
In some ways this is laughable. Over a decade since the Global Financial Crisis and we are still in a situation where a 0.7% CPI reading is seen to herald the start of a rampant inflationary period.
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Memories are short, or in some cases, experience is lacking - so investors (professional or otherwise) do not seem to recall far higher inflation in years gone by.