Inflation Assets and Deflation Assets

Inflation Assets and Deflation Assets Should investors allocate a higher proportion of their portfolio to inflation assets while reducing their exposure to deflation assets? Image: BofA Global Investment Strategy

Deflation Assets vs. Inflation Assets

Deflation Assets vs. Inflation Assets Is the 40-year bull market in bonds over? Deflation Assets: government bonds, U.S. investment grade, S&P 500, U.S. consumer discretionary, growth and US high yield.Inflation Assets: TIPS, EAFE, U.S. banks, value and cash. Image: BofA Global Investment Strategy

Deflation Assets and Inflation Assets

Deflation Assets and Inflation Assets Deflation assets outperformed inflation assets 3 out of past 15 years. Image: BofA Global Investment Strategy

Inflation Assets vs. Deflation Assets

Inflation Assets vs. Deflation Assets The leadership remains deflationary, and the laggards remain inflationary. Deflation assets: government bonds, U.S. investment grade, S&P 500, U.S. consumer discretionary, growth and US high yield. Inflation assets: TIPS, EAFE, U.S. banks, value and cash. Image: BofA Global Investment Strategy

The Performance of “Deflation Assets” vs. “Inflation Assets”

The Performance of “Deflation Assets” vs. “Inflation Assets” Interesting chart showing the performance of “Deflation Asset” vs. “Inflation Assets” since 1960. “Deflation Assets”: Government Bonds, US Investment Grade, S&P 500, US Consumer Discretionary, Growth and US High Yield “Inflation Assets”: TIPS, EAFE, US Banks, Value and Cash Image: BofA Merrill Lynch

Valuation and Inflation

Valuation and Inflation Investors in equities should fear too much inflation and deflation, as the sweet spot for inflation is about 2% per year. Image: Fidelity Investments