Flight to cash: Is 'most loathed asset' becoming king again?

The prospect, however distant, of a slowdown in US quantitative easing has led many market participants to reassess positions in recent weeks. But while an improving US economy raises optimism in some quarters, the continued presence of underlying disinflationary pressures gives pause for thought. A domestic inflation rate that has remained persistently above 2% has caused much anguish in the UK, but deflationary forces remain intact across major economies. Figures produced by Thomson Reuters this week show the aggregate G7 inflation rate fell to just 0.9% in April. That is a le...