It has become a consensus trade to expect inflation but much of this may already be priced in, creating potential opportunities in medium-term bond yields if inflation proves transitory
There was an excess of private savings before COVID-19 that required governments to spend to balance private sector saving. In some ways today’s fiscal stimulus is an extension of the response to the deleveraging environment that lingered after the Global Financial Crisis
For reflation to be convincing we need to see evidence that households and businesses are changing their behaviour towards taking on more debt, yet credit demand remains soft and markets seem to be ignoring weaker data in China
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
You are now leaving our site and entering a website not operated by or affiliated with Janus Henderson Investors. While we aim to point you to useful external websites, we cannot be responsible for their content, opinions, advice or accuracy, even if you utilise the services on the linked site to invest in our products.
You should review the Terms and Conditions of third party websites and contact the operators of such sites if you have any queries.
You are now leaving Janus Henderson's website and will be redirected to the website of the Securities and Exchange Commission (the "SEC"). Money market funds are required to provide the SEC with a monthly electronic filing of more detailed portfolio holdings information on Form N-MFP.
Janus Henderson is not responsible for the content, accuracy or timeliness and does not make any warranties, express or implied, with regard to the information obtained from other websites. This link should not be construed as either a recommendation or offer to by or sell any securities.