Financial TimesFinancial Times

Grumpy investors see bright side in growth risks

By Katie Martin

03 Jun 2022 · 4 min read

Slower pace of GDP expansion could mean a slower pace of monetary tightening by central banksI am allowed to say this because I come from farming stock myself: farmers complain constantly, about everything. Too wet, too dry, too hot, too cold, etc etc. Investors are not so different.

The opening months of this year brought an inflation panic. Bonds dropped hard because they are allergic to inflation, which eats in to their (rather skimpy) fixed payouts. Stocks dropped because fund managers decided that the US Federal Reserve would dish out half-point rate rises like sweets at every meeting to try and pull inflation down. The “everything rally” unravelled and left many fund managers with nowhere to hide. The horror!

Sign in to informed

  • Curated articles from premium publishers, ad-free
  • Concise Daily Briefs with quick-read summaries
  • Read, listen, save for later, or enjoy offline
  • Enjoy personalized content