The FlexShares team examines the potential for inflation to spike this year.
From BlackRock: A synchronized rise in global inflation expectations is fueling higher bond yields, and we see actual inflation running hotter in the U.S. than in Europe and Japan. Richard Turnill explains the implications for our views on inflation-linked bonds.
From Chris Kimble: The Fed raised rates this week, but was it necessary for them to do that? Humbly, the answer will come in time.
From Invesco: Last week saw a focus on the topic of inflation. The minutes from the most recent Federal Open Market Committee (FOMC) meeting, released last week, showed that a number of FOMC participants are rethinking whether current low inflation is as transitory as they originally posited.
From BlackRock: The Inflation GPS incorporates big data on price trends and a daily-updated “nowcast” of inflation-related statistics to give a read on where core inflation is headed in major economies. Jean Boivin explains.
From Chris Kimble: Seems like it’s easy to hear concerns that inflation is back and that interest rates have to rise.
From Gary Tanashian: At NFTRH, we are about major macro turning points above all else. Of course, it is often years between these turning points or points of significant change so we are also about the here and now, and managing the trends, Old Turkey style.*
From BlackRock: Contrasting inflation outlooks in the U.S. and eurozone suggest further monetary policy divergence, creating opportunities for investors. Richard Turnill explains.
From Zacks: Finally, U.S. consumer prices rebounded and hit a three-month high in August. Consumer prices in the United States rose 1.9% year over year in August 2017, ahead of July’s 1.7% increase and market expectations of 1.8%.
From Zacks: A key inflation measure, the Personal Consumption Expenditures (PCE) index, remained unchanged year over year in July, per data released on August 31, 2017. It increased 0.1% in July on a monthly basis.
From Steven Vannelli, CFA: Today gold is trading over $1,305, for the first time since November 4, 2016.
From Chris Kimble: At the beginning of the year, it was easy to find people discussing the idea that reflation/growth was going to take place in the economy and many positioned portfolios accordingly.
From Chris Kimble: Post election the investment community was strong on the belief that the new administration was going to get the economy to grow and that inflation will pick up. Below looks at the Growth/Inflation indicator ratio, which is created by using TIP/TLT ratio.
From Chris Kimble: The economy continues to do well, along with the stock market, prompting many to be concerned about inflationary pressures picking up speed.
From Zacks: The United States has been striving to reach its 2% inflation target. The Federal Reserve raised interest rates by a quarter percentage point for the first time since 2006 in December 2015. This step was taken after keeping interest rates at near zero levels since the 2008-09 crisis.