Quote from "Guerre aux Chaires d’Économie Politique."
Inflation is a concern for companies, so too recession. Indeed, the last time managements were talking this much about recession - they were in one.
After years of implementing ultra-dovish policy, central banks have hiked rates rapidly over the past few months to try to rein in a surge in inflation and prevent a break-out of inflation expectations. In doing so they are acting as if the economy is moving into a high inflation regime, but it remains unclear for now whether this is actually the case. The risk is that their actions will push the economy into recession, in which case they will probably have to cut rates all the way back to zero again.
Government bonds have not acted as safe haven assets recently. Sunil Krishnan explores whether this spells the end of the traditional 60/40 allocation in multi-asset portfolios.
“The Prussian Monarchy is not a country that has an army, but an army that has a country”
"Peace, the charm's wound up."
"It’s easier to fool people than to convince them that they’ve been fooled."