Our Asset Allocation Committee Thinks Short-Term Inflation is Unlikely
- In the current environment, our asset allocation portfolios are underweight to inflation-sensitive equities.
- We believe that short-term inflation is unlikely given that money supply typically inflates asset prices more than goods prices.
- The Fed may not be able to overshoot the 2% target inflation, and secular forces against inflation—automation, digitization, and globalization—may endure.
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