Us Federal Reserve

Stubborn inflation is forcing central banks around the world to recalibrate, according to Neuberger Berman. Shorter durations remain du jour while yields are strong, but hedging against monetary easing (especially in the US) could be savvy.

A data dependent Fed will eventually need to acknowledge signs of a strengthening global economy, says Neuberger Berman. Bolts of information that sway the central bank will continue to keep market watchers on tenterhooks.

Investors and advisers have a tendency to extrapolate recent events into the future, and the last six months have shown how dangerous this can be. For those reviewing and building portfolios as the new financial year begins, five key issues should be front of mind.

Inflation is in a transitory phase but the downward trend looks set to continue. Sovereign funds around the world are adjusting accordingly, with 5 major themes charting the course of institutional investors in the current climate.

Fear of an impending recession in the US has been hashed out for more than 18 months now, says Francis Gannon. The reasons are myriad, but not enough people are talking about what shape a recovery would take and how investors should position themselves.

True to form, US stocks are outperforming Aussie shares on the back of a resurgence in technology-related company valuations. Economists warn against straying from diversification, however, with Aussie miners still offering investors capital returns on top of an underlying hedge against a US downturn.

“I believe inflation is largely in the rear view mirror, and the Fed will not be hiking again,” said Invesco’s chief global market strategist Kristina Hooper. And the trend could be a global one.

Inflation and rate rises are back on the table it seems, after this week’s US Federal Reserve Board meeting, Chairman Jerome Powell indicated that rate hikes could come in 2023, but no mention of when scaling back of bond buying would begin. His comments took markets by surprise signalling a change in policy sooner than…