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Investors Bet Again On The Return Of Inflation


Champ Kind
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LONDON/NEW YORK (Reuters) - After months of angst about deflation that has led many central banks to adopt negative interest rates, there's been a sudden burst of speculation that inflation may be back. In the United States and Britain at least, many investors are betting that inflation has reached its nadir and are seeking to insulate their portfolios against rising consumer prices. Demand for U.S. Treasury inflation-protected securities (TIPS) is at its strongest in years, while benchmark TIPS exchange-traded funds have recently chalked up their best quarterly performance in 12 years.

 

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