LIONTRUST believes the recent spate of interest rate hikes and rising inflation represents a return to more normal conditions after more than a decade of the so called ‘Goldilocks economy'.
Jeremy Lang, joint investment director at Liontrust and manager of the Liontrust First Growth and First Income funds, said although the jump in inflation had made bond investors jittery, it would enable companies to increase profits. “There is definitely some inflation in the system, but it is at modest levels and for most of the companies I invest in it is good inflation,” said Lang. “Companies with good inflation are the ones which can push up their prices more than their costs, and it is a welcome return to normality.” Lang admitted there was a consensus in Western industrialised econ...
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