In October’s Investment Committee meeting, we analysed what reflationary investments should be considered a priority and why, as the world nears peak inflation.
Reflation Trades
It’s always darkest before the dawn. Given our expectation that inflation has peaked across many developed economies (with the notable exception of Australia) then late 2022 / early 2023 should signal the start of at first a ‘pivot’ in the degree of central bank rate increases and then a move toward cutting rates – most likely around mid-to-late next calendar year. We still have plenty of time up our sleeve but central banks cutting rates will signal the start of the new investment cycle. So, while it may still be early days yet, we need to think about what asset classes will be beneficiaries of the early stage of the next investment cycle – and to start positioning accordingly. This thematic piece aims to identify precisely which asset classes represent high conviction ‘reflation trades’ and to provide the Investment Committee with a ‘shopping list’ of possible candidates to average into over coming months. …
Full Article reserved for dozzi’s Premium Investment Service. 
