While the media, such as Bloomberg economics editor Peter Coy, advise Americans to ignore the hyperinflation hype, fund managers surveyed in a recent Bank of America survey, who collectively manage $630 billion, believe inflation is the biggest risk to markets right now. Instead of earlier concerns about Covid-19, inflation is currently the biggest risk to markets as government stimulus spending worries investors.
As inflation rises, mainstream media tells Americans not to worry
Federal Reserve Chairman Jerome Powell has shown little concern about rising inflation lately and has never said when the Fed’s monetary easing would end. After Powell was interviewed at the Wall Street Journal banquet and showed no signs of concern, there was a massive sell-off in the US 10-year bond markets.
After the massacre at the market of 4. In March 2021, some mainstream media simply brushed aside concerns about inflation.
Peter Coy, Bloomberg’s economics editor, wrote an editorial that day titled Tune Out the Hyperinflation Hype. It’s just an economy of memes. The editorial dismisses the concern as media hype and associates the term with the all too common conspiracy theory. Coy even noted that the fear of inflation is helping the main crypto asset, bitcoin (BTC).
Conspiracy theories have an insidious way of infiltrating the real world, Coy’s editorial explains. Fear of inflation, or even hyperinflation, is behind the meteoric rise of bitcoin, according to a report by Bloomberg Economics.
220 investors manage $630 billion – inflation considered the biggest term risk through Covid-19 Concern
According to the latest Bank of America (BoA) survey, which polled 220 fund managers representing more than $630 billion in assets under management, higher than expected inflation poses a greater risk to markets.
For the first time in more than a year, respondents to the Board’s survey indicated that inflation is more worrisome to the future of the economy than a coronavirus outbreak. In the wake of the bond market turmoil, 35% of fund managers surveyed said US government bond yields were the second most important risk.
For the first time since February 2020, corona virus no longer tops the list, as concerns about inflation top the list.
37% of 220 fund managers with $630 billion in assets say inflation is now the biggest risk to investment markets. Furthermore, some participants expressed concern about a possible unexpected tightening of monetary policy by the Federal Reserve.
Despite comments about the warehouse economy and alleged conspiracy theories, 93% of Bank of Japan respondents say they expect inflation to rise in 2021. Despite the expected decline in purchasing power, nearly half of fund managers surveyed by the Bank of Japan are optimistic that the global economy will recover in a V-shape.
This prompted investors to seek investments in commodities, as opposed to some technology stocks, the bank said in a report. An OANDA currency manager says Jerome Powell and the Federal Reserve have time before summer to address inflation.
Powell is likely to repeat his best arguments when talking about inflation, suggesting that the end-of-year price rise will not be large or sustainable, Edward Moya, senior market analyst at OANDA, said on the 15th. March. Summer is a period when inflation could rise, so Powell should be able to address any concerns by then, the analyst adds.
What do you think of the Bank of Japan study showing that fund managers are more concerned about inflation than Covid-19? Let us know what you think in the comments below.
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