Oil prices have pushed through resistance and are breaking out while the US dollar has pushed through support and is breaking down. All of the major industrial commodity prices are moving in lock step, while the global economy appears to be accelerating led by the United States. With output gaps in major economies having closed, it is likely we see an increase in inflationary pressure in 2018. In this quarter’s strategy update, Portfolio Manager Steven Vannelli, CFA, explores portfolio strategy within a backdrop of rising inflationary pressure, including:
- Within the equity markets, which regions may be lined up for potential outperformance and underperformance, and which sectors could potentially emerge as leaders;
- The global currencies that are, in our view, best positioned for a rise in inflationary pressure;
- The global government bond markets that are most correlated to rising commodity prices; and
- The prospects for gold.
Download the full slide presentation here: Quarterly Strategy Report: Breaking Out & Breaking Down