According to Odaily Planet Daily, just as bond traders believe that inflation is under control, some investors are building defensive positions to prevent future inflation surges. These fund managers hope to provide a buffer for fixed income returns when inflation hits.
Wall Street strategists recommend taking advantage of the market's future inflation indicators to establish defensive positions. Now that interest rate cuts are inevitable, recession has replaced inflation as the main concern.
John Bilton, head of multi-asset strategy at Morgan Asset Management, said recession concerns may be overdone, but inflation risks are underestimated, and recommended remaining neutral on duration or interest rate risk exposure.
