By Daily Crux Editor Brandon Herrin:
Add $60 billion fixed-income fund Pictet Asset Management, part of Switzerland's largest closely held private bank, to the growing inflation camp. The fund is planning to increase its existing position in TIPS - a Treasury bond that adjusts its payout to the rate of inflation.
Mickael Benhaim, head of global bonds at the bank's investment unit, says "Inflation may not be an immediate threat, but it will be an issue down the road, given the massive amount of cash sloshing in the system... We have no plan to take profits in TIPS at this point, and are likely to buy more on setbacks."
Taking all of the government's excessive money printing policies into account, inflation is a sure thing... And TIPS can serve as the perfect vehicle to prepare your portfolio for it.
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