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Wednesday, March 30, 2016

BlackRock Joins Pimco Warning Investors to Seek Inflation Hedge

http://www.bloomberg.com/news/articles/2016-03-29/blackrock-joins-pimco-warning-investors-to-seek-inflation-hedge

“Stabilizing oil prices and a tighter labor market could contribute to rising actual, and expected, U.S. inflation,” Richard Turnill, BlackRock’s global chief investment strategist, wrote Monday on the company’s website. “We like inflation-linked bonds and gold as diversifiers.” New York-based BlackRock manages $4.6 trillion.
Federal Reserve Chair Janet Yellen, in a speech Tuesday in New York, said she was confident inflation would gradually return to the Fed’s 2 percent goal. Pimco, which manages the $87.8 billion Total Return Fund, and BlackRock have both told investors this year that inflation is picking up.

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