- What happens when you combine the tipping point of two deflationary forces—globalization and demographics—with a pandemic, epic supply-chain disruptions and an invasion in Europe? Inflation of a magnitude not seen since the 1970s.
- As inflation evolves, so should investors’ portfolios. During 2021’s early inflation, the Fed was accommodative, growth was abundant and higher-spread sectors like high-yield corporates benefited.
- Real yields for short-term TIPS are especially deep into negative territory, a product of the recent inflation spike.
For further details see:
Inflation TIPS For Fixed-Income Investors