The market appears to have accepted the Federal Reserve’s narrative that rising inflation will be temporary, but Man Group’s Peter van Dooijeweert is less sure.
“We, as a firm, are a bit suspicious as to whether that narrative is going to hold,” van Dooijeweert, a managing director at Man Solutions who assists clients with multi-asset portfolios, told MarketWatch. “I don’t share the market’s confidence that this is as transitory as it appears.”
The yield on the 10-year Treasury note
has remained low after inflation, as measured by the consumer price index, clocked in hotter than expected earlier this week. Used cars were a big contributor to the jump in inflation, reflecting higher costs stemming from supply problems with chips during the economic reopening from the pandemic, van Dooijeweert said.
“I don’t think anyone expects…