Haig Bathgate says he has firmly positioned client portfolios for inflation, in an article on Portfolio Adviser.
"Central bankers tend to wait for confirmation on the way out of a crisis, so the recovery will have to become very entrenched in the US before the Fed will contemplate increasing interest rates. We are expecting a sell off when interest rates start to rise but think things have to get materially better before that happens, which will work for equities in the meantime.
"When markets were moving from risk on to risk off in phases it did not matter which kind of companies you were in. Now we are moving into a more stable period and tail events are diminishing, what we are seeing is correlation between markets and companies falling. There are differences in share price movements and it is a period in which active managers will make a difference."
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