Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Head of Fixed Income Strategy
Summary: Join Saxo Bank's inflation webinar to gain a better understanding of inflation, how it can impact your investments and how to hedge against it.
In life and the financial market, it is true that by not deciding to move in any direction, you are actually making a choice. This is especially true today as optimism fuels an overleveraged stock market; but, everybody knows that there are incredibly deep economic problems. Investors buying into overpriced stocks and pushing prices even higher insist on seeing a glass very much full. They desperately try to ignore that a drop of too much water will have the glass spilling all over.
This is very much what is happening with inflation. There are clear elements today that are telling us that inflation will eventually rise. However, because the human brain has removed from its memory periods of high inflationary pressures, investors still flock the equity market and risky credits. Investors believe that central banks worldwide will be in their perpetual rescue. Well, the market today is a clear example of central banks failures. Desperate monetary policies have not been able to ignite inflation and prevent financial crises. Therefore, central banks will most likely be powerless to save investors even from overshooting inflation.
We invite you to join Saxo Bank’s inflation webinar to gain a better understanding of inflation, how it can impact your investments and how to hedge against it. Christopher Dembik, head of macro analysis, will look at inflation in history and how central bank policies and a recession caused by coronavirus are exacerbating it. Ole Hansen, head of commodity strategy, will look at food inflation. I will give you an overview of Treasury Inflation-Protected Securities, which have recently been added to the platform. I will focus on how do they work and why they are an essential tool to hedge against inflation.
We are all looking forward to seeing you at the webinar!