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Kolanovic Warns Most Money Managers at Risk of ‘Inflation Shock’

  • Strategist says many haven’t experienced inflationary regime
  • JPMorgan predicts lasting shift to value stocks, commodities

Money managers who’ve spent the bulk of their careers profiting from deflationary trends need to quickly switch gears or risk an “inflation shock” to their portfolios, warns JPMorgan Chase & Co. chief global markets strategist Marko Kolanovic.

“Many of today’s investment managers have never experienced a rise in yields, commodities, value stocks, or inflation in any meaningful way,” Kolanovic wrote in a report Wednesday. “A significant shift of allocations towards growth, ESG and low volatility styles over the past decade, all of which have negative correlation to inflation, left most portfolios vulnerable.”