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Persistent price pressures leave investors looking for alternatives
HEIGHTENED inflation is forcing investors to look at alternative assets, fresh research from Clear Path Analysis reveals today.
The world economy faces a “long term upward trend in inflation caused by lax monetary policies globally, which will significantly erode the value of low return assets and cash,” according to Deutsche Bank economist Thomas Mayer.
Investors should increasingly look towards index-linked government bonds, said Stephen Jones of Aegon Asset Management.
“We’ve become used to low and stable inflation in the last twenty years,” added Deutsche Bank’s Nicholas Tabardel.
“If you take a long term historical perspective, that’s an exception. Over the next five to ten years inflation volatility will be much higher.”