T. Rowe Price: Overweight Inflation Sensitive Assets

The video discusses the potential for a second wave of inflation, driven by factors such as food prices and oil. It examines how central banks, particularly in developed markets, are responding to these trends. The impact on equity and bond markets is analyzed, with a focus on yield movements and portfolio strategies. The video also explores China's economic outlook, highlighting the challenges and potential policy responses.

What historical trend is mentioned regarding inflation waves?

• Inflation is unpredictable and random.

• Inflation is always decreasing.

• Inflation often comes in multiple waves.

• Inflation usually occurs in a single wave.

What is a significant driver of inflation in Asia?

• Healthcare costs

• Automobile prices

• Food inflation

• Technology prices

What is the expected trend for nominal yields according to the discussion?

• They are expected to decrease significantly.

• They are expected to remain stable.

• They are expected to fluctuate randomly.

• They are expected to move higher.

What is the preferred asset class in a period of low volatility according to the investment strategy discussed?

• Low yield bonds

• Cryptocurrency

• High yield bonds

• Real estate

How is the economic outlook for China described?

• Predictable and stable

• Difficult to predict

• Rapidly improving

• Completely negative

What is the stance on cash in the current investment strategy?

• Cash is considered irrelevant.

• Cash is considered king.

• Cash is considered a liability.

• Cash is considered risky.

What is the position on Chinese investments given the current economic data?

• Strongly positive

• Highly speculative

• Neutral

• Strongly negative