Hegarty’s own positioning aligns with this vaguely stag-flationary outlook, in which growth slows as inflation picks up. In his view, the prospects for slower growth and slightly faster inflation “are being mispriced by the market.” Because of that, he’s invested in short-dated U.S. real yields and inflation-linked bonds, and looking ahead to the Fed’s review of its inflation-targeting regime in June for further guidance on how committed policy makers are to corrective action.
This article was provided by Bloomberg News.