What keeps investors awake at night?

 

Is it inflation, growth, interest rates, the Fed’s next moves?

A recent survey we conducted over social media showed that nearly half of the respondents say inflation is their main concern. There are as many different perspectives as there are many unknowns. While some investors cringe at unexpected spikes in the consumer price index (CPI), others dismiss it as a transitory phenomenon. Central banks, particularly the US Federal Reserve, have recently become more inflation-tolerant, but this doesn’t mean that investors are relaxed about it. It is also important to look at the flip side of the coin, deflation, which is even less desirable than inflation.

Surveyed 13,634 global potential private and institutional investors. Survey period: July 23 to August 20, 2021

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How should investors position themselves in an environment where economic growth has peaked and inflation is on the rise?

This depends on your perspective and your asset class. Are you focused on developed market equities, or are you a fixed-income investor, maybe exploring more exotic shores via emerging-market paper? Do you think a multi-asset portfolio is right for you? The more you consider all the different perspectives, the more you can be sure to make the right decision for your investments.

 

 

See what our experts have to say about inflation.

 

 

What keeps us up at night? Not inflation, but rate hike uncertainty

Markets have dissected every word uttered at the US Fed’s Jackson Hole symposium. One thing remains as clear as ever: The Fed won’t rush rate hikes, also because inflation is no real worry – or is it? Sweating under the studio lights, five Vontobel experts discuss prices, growth, and what keeps them up at night.