Fed’s Inflation Approach Is Making Waves in Some Corners
- First Eagle’s McLennan says policy adds to inflation kindling
- Firms with oligopolistic power, gold among good plays, he says
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Asset managers who’ve guarded against inflation during a decade of easy money and ballooning deficits have little to show for their efforts. That’s still not stopping some from hedging that risk.
Thirty-year market veteran Matthew McLennan of First Eagle Investment Management is among those warning price pressure are coming down the road. He’s betting easy money and further hits to productivity will spark inflation, making bigger companies with pricing-power and competitive advantage a good wager. He’s also piling into gold as a pure hedge against the erosion of value caused by inflation.