Global Value and Income Dispatch

What if the Fed has inflation completely wrong?

  • Robert Hordon
28 Mar 2019
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  • Recent financial market volatility was to a large extent driven by uncertainty around how the Federal Reserve may respond to future inflation.
  • Conventional wisdom views higher interest rates as the cure for inflation; “Neo-Fisherians” credibly argue the opposite and raise difficult questions.
  • We think investors should focus on bottom-up opportunities and be prepared for policy mistakes and more swoons in sentiment.


The views expressed are those of the portfolio manager as of March 2019, are subject to change, and may differ  from the views of other portfolio managers or the firm as a whole. These opinions are not intended to be a forecast of  future events, a guarantee of future results, or investment advice.

Sources for all data: JOHCM/Bloomberg (unless otherwise stated).

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