Citi and Barclays Push Back Against the Reflation Doom and Gloom
- Citi sees QE helping inflation trades; Barclays backs value
- Value stocks are back at their lowest versus growth since ‘70s
This article is for subscribers only.
Two days after fading odds of a Blue Wave Congress appeared to kill off the reflation trade, Citigroup Inc. and Barclays Plc see signs of life.
While the likely failure of the Democratic Party to take over the Senate means any fiscal splurge will probably be smaller, the prospect of increased Federal Reserve stimulus enhances the appeal of inflation-linked trades in the bond market, according to Citi.