After the recent data publication that showed a possible peak of inflation being reached, Wall Street was united in celebration. Although some leading financial managers aren’t sharing such euphoria as they are forecasting years of facing consequences and struggling with high prices, all of which would affect investment strategies.
JPMorgan Asset is still investing in short-term debt with high ratings, because the price pressure is still obvious. The company’s chief investment officer had cautioned about a long-lasting inflation a long time ago while some other experts suggested it to get weaker after the pandemic.
According to a statement made by strategists from Bank of America under the guidance of Michael Hartnett, an inflation of quickly rising services and wage inflation wouldn’t disappear any time soon, and while it would get lower, the inflation levels would still be the highest in the past 20 years.
As it was said by chief US strategist at Ned Davis Research Inc. Ed Clissold, the company is still oriented towards cash mainly, and is underweight equities, as he shares an opinion that it might be premature to go back to stocks or bonds.