Asset Allocators' Soapbox: Don't underestimate the threat of inflation

Inflation can seriously damage one's wealth and, for that reason, should never be far from the mind of the investor. Money has been ‘printed' in unprecedented quantities through quantitative easing (QE) and the rapid expansion of central bank balance sheets to stave off financial Armageddon. Now, though, opinion among investors is divided about what lies ahead in terms of inflation or deflation. In the eurozone, the European Central Bank has concentrated its efforts on avoiding deflation. Generally, in the developed world, central banks have targeted inflation of around 2% but have faile...