Is Depressed Inflation Sowing The Seeds Of Market Volatility?

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Rupert Hargreaves
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Lack of market volatility tied to depressed Inflation? A rapid, unexpected change in interest rate expectations could lead to a dramatic increase in market volatility, which will result in sell-off in risk assets according to Nomura. What would inspire such a dramatic change in interest rate expectations? The answer is simple, a rapid increase in inflation (something few analysts expect) would be the catalyst that would set off a sudden change in Federal Reserve policy. It is no surprise that many analysts and economists have given up on inflation. After many quarters of negative inflation surprises, confidence in inflation forecasts…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk