The Great Inflation Trade Finally Falters
- Trend followers mired in worst performance since March 2020
- Bears burned by equity rebound as weaker dollar defies bulls
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The most crowded trade on Wall Street -- long inflation -- is suddenly getting crushed like never before in the post-lockdown era, sparking a spate of forced deleveraging among a broad cohort of institutional funds.
Betting against technology stocks and Treasuries or going long the dollar are some of the most profitable strategies in a year when inflation at decade highs drove asset returns. Now, with producer prices adding to signs of easing price growth, all these bets look shaky.