Join Adam Hetts, Global Head of Portfolio Construction and Strategy, as he speaks with Co-Heads of Strategic Fixed Income Jenna Barnard and John Pattullo about whether there is substance to the reflation trade.

Key Takeaways

  • The consensus trade expects inflation, but much of this may already be priced in, creating potential opportunities in medium-term bond yields if inflation proves transitory.
  • An excess of private savings before COVID-19 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 behavior toward taking on more debt – yet credit demand remains soft and markets seem to be ignoring weaker data in China.

Tune in to Global Perspectives, a series where our investment leaders discuss the biggest market trends and implications for investors.

Adam Hetts, host of the Global Perspectives podcast series, leads the Portfolio Construction and Strategy (PCS) Team at Janus Henderson and, with his holistic view of markets, products and client needs, is a regular thought leadership contributor and speaker at industry events. The Janus Henderson PCS Team is available to advisors for customized model portfolio consultations. The team and its proprietary portfolio analysis capabilities provide support based on a whole-of-market view, focused on your needs and goals. We would be delighted to discuss in more detail the services the PCS Team can offer. Please visit the PCS section of our website or speak to your usual Janus Henderson representative.

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