if they hope to maximise portfolio returns over the next three to five years, says Hywel George, the director of investments at Old Mutual Investment Group .
The investment expert said that the US Federal Reserve’s approach to the 2020/21 Covid-19 pandemic directly contributed to higher rates of inflation adding that the Fed kept interest rates low for too long. “Our forecast is for an increase of 1.5% month-on-month, which will push the annual rate up to a projected 7.8% from 7.4% in June. This is bang in line with the market consensus. Core CPI is expected to increase by 4.5% year-on-year, up slightly from 4.4% in June,” it said.
“What has surprised us, though, is the pace at which these events have unfolded, which talks to how swiftly global events get transmitted through markets these days,” said George.Regarding geopolitics, George said that there had been a global power shift from the US to China, which is set to play a major role in worldwide investment.