“It’s the type of environment we expect to see in the rate markets, certainly in the risk markets, and in the equity markets. We’re generally underweighting our benchmark durations in a variety of portfolios, especially the front end and the belly of most global curves. From a fundamental point of view, whether it’s growth or inflation, we do think interest rates will move higher than today’s levels,” it adds.
Amid talk of inflationary pressures, the analysts at MFS Investment Management say inflation is likely to fall “a significant amount” in 2022 instead.
This year also looks to be a period of volatility, “probably more so than we witnessed in most of the non-recession years that we have witnessed over the last few business cycles”, says the team
