The impact of the continued sticky inflation on multi-asset portfolio is a worry for advisers, according to the latest FTAdviser poll for Talking Point.
When asked "how much of a worry is the impact of sticky high inflation on multi-asset portfolios?", more than half (56 per cent) said it was a worry as markets were too volatile to accurately price in.
Just over a third (35 per cent) said they were not worried as the volatility had been priced in, while the remaining respondents (8 per cent) said they were indifferent.
Wes Wilkes, managing partner and investment director at Iron Market Group, said: “The continued threat of sticky inflation remains a concern as it holds the triple threat of damaging consumer confidence, threatening bond valuations and increasing the likelihood of further rate hikes.
“We have seen much of the damage for multi-asset in 2022 and the positive side to the rate hikes caused by high inflation has created an actual, if not real, return in the bond side of portfolios.
“However, as wage growth remains high, the 2 per cent inflation target seems more difficult to achieve and thus leaves further rate hikes on the table and the likelihood of recession higher, with rate cuts later down the line – the latter two points markets may not yet have fully priced in.”
ima.jacksonobot@ft.com
