Inflation/Asset class Hair of the dog

Inflation may be on the loose again. There are signs that monetary beast has escaped from the formerly vigilant central banks. But this monster doesn’t eat livestock or maidens. It chews up real asset values. So where can asset allocators hide? Nothing seems quite right. Straight bonds are inflation’s first victims. Inflation-linked bonds offer real protection, but their returns are strictly limited. Most commodity prices are already high. Equity prices could suffer from profit falls and de-rat...