Wall Street Managers Are Pushing Back on Easing Inflation Hopes
- Cautionary stance comes amid a CPI-fueled cross-asset rally
- Some firms aren’t ready to move on from defensive positioning
Shoppers inside a grocery store in San Francisco, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Euphoria is sweeping every corner of Wall Street in the wake of the latest data that suggests inflation is peaking from a four-decade high. Yet big money managers are in no mood to celebrate – betting that the world will have to contend with elevated prices for years to come, in a game-changer for investing strategies of all stripes.
JPMorgan Asset Management is clinging onto a record allocation in cash in at least one of its strategies while a hedge fund solutions team at UBS Group AG is staying defensive. Man Group quants expect the great inflation trade to endure, with all signs suggesting price pressures will stay strong for a long while yet.