Overall, inflation pressures in the developed world and in key emerging markets remain very weak. This means that monetary policy will remain loose for some time to come which should be positive for equity markets and other so-called ‘risky assets’. Overall, inflation data is coming in slightly below expectations but slightly above prior periods. The big discrepancy is between current rates of inflation and desirable rates of inflation – in most countries other than the US, inflation is much lower than central banks would like.
Published in Investment Letter, November 2015
"The views expressed in this communication are those of Peter Elston at the time of writing and are subject to change without notice. They do not constitute investment advice and whilst all reasonable efforts have been used to ensure the accuracy of the information contained in this communication, the reliability, completeness or accuracy of the content cannot be guaranteed. This communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment."