Monday, August 7, 2017

BlackRock, Vanguard Say Bond Market's Got This Trade All Wrong

Time and again, weak economic data have made the market’s inflationistas -- many of whom were beguiled by President Donald Trump’s pro-growth promises -- look a little foolish. But for Vanguard and BlackRock, it’s only a matter of months before inflation is back at 2 percent. Regardless of what does or doesn’t happen in Washington, a tight job market will boost wages, lead Americans to spend more and push up consumer prices. Add to that a weak dollar and prospects the Federal Reserve will hold off raising interest rates until 2018, and they see a good chance the bond market is too downbeat about inflation.

from FA News

No comments:

Post a Comment