Reported 9 months ago
Barclays strategists recommend purchasing inflation hedges in the US Treasury market in preparation for the potential victory of former president Donald Trump in the upcoming election. They advise investing in five-year Treasury inflation-protected securities (TIPS) to outperform regular five-year Treasuries, anticipating a wider yield spread between the two. The strategists believe that the market should consider the risk of higher-than-target inflation if Trump wins, as his policies could lead to increased tariffs, tax cuts, deficit worsening, and economic stimulus, impacting inflation expectations.
Source: YAHOO