Janus Henderson's US-based Multi-Asset Solutions Team present their latest Tail Risk Report, using options market prices to infer expected tail gains and losses for each asset class.

Key takeaways:

 

  • For the past several months, options markets have sensed a whiff of inflation, even against the backdrop of slowing global growth.
  • Inflation is being felt in the retail sector; the average trip to a leading US retailer today costs 5% more than a year ago.
  • We consider inflation to be one of the more pernicious risks to financial assets, particularly given how late we are in the economic cycle.
Tell Tail Signs 08 2019

 

Please click on the link to access the document.