Unformatted text preview: versus risk-free assets. “Over the past 30 years, every trough in core US CPI has coincided with a period of rising bond yields. Longer term, bond investors are unlikely to lose money in nominal terms, but at today’s low yields even a modest uptick in inflation will drag on real returns. “However, the prospect of higher inflation should be good news for equities , at least initially – especially relative to bonds. And if asset allocators start to switch out of bonds and into equities, the upside for stocks could be substantial, given the relative size of the two asset classes.” Copyright The Financial Times Limited 2010. Print a single copy of this article for personal use. Contact us if you wish to print more to distribute to others....
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- Spring '10
- Inflation, versus risk-free assets, Graham Secker, Graham Secker Published, modest uptick