How inflation is impacting your sector and strategies to respond with confidence.
When we look at the current state from an economic point of view, it’s an extremely difficult environment. Perhaps one of the most complex and uncertain we’ve seen, and others who have been investing for decades share this sentiment. So everybody is right to feel confused because it seems we’re in a territory we have not been in before. Having said that, in investments we’re starting to talk about what it will look like to come out of the current environment – rather than the situation worsening. Our current investment positioning is only moderately defensive, and we remain on the lookout for quality assets that investors can purchase at reasonable prices.
We have also recently seen a decrease in long term bond yield estimates, indicating markets feel interest rate rises will come to an end soon. This is a positive signal and is different from historical periods when inflation became embedded in the economy.
Read the white paper from RSM in full here.