inflation

The Total Return portfolio management team from PIMCO examines how successful the Fed will be at reflating the U.S. economy. They see inflation on the horizon. Oil prices and a strong dollar are holding down inflation, but not for long.

Ultimately the Phillips curves plays out. This is an important measurement tool by the Federal Reserve. Low unemployment will automatically lead to higher wages and more consumption. This equals more inflation.

PIMCO is investing more in short duration bonds like 5 year bonds and less 30 year bonds. They think the Federal Reserve will succeed in creating higher inflation.

In the long-term, this will be good for gold. And remember, gold shines when inflation returns.

Video length: 00:01:53

 

Print Friendly, PDF & Email