Stock Bulls Are All-In on Inflation's Swift Demise
Fund managers are overweight equities even as economic expectations crater. They’re betting that receding price pressures will keep bond yields low.
The air’s coming out of the reflation trade.
Photographer: EMPPhotography/Getty Images
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I’m going to repeat myself. I don’t know whether the current dose of inflation will prove to be transitory or not, but what should worry everyone is the weight that is being put on the proposition that it will soon be over. For the latest evidence, take a look at the regular monthly survey of fund managers published by BofA Securities Inc. Based on interviews with investors who between them manage an ungodly amount of money, it tells a clear story.