Inflation: down but not quite out
Equity markets were choppy last week, with the on-again-off-again summit between President Trump and North Korean leader Kim Jong-Un and the backing away from the trade agreement with China causing sentiment to swing. Since it is not even clear that there is agreement within the White House over the goals of the US, geopolitical uncertainty is something we’ll have to live with. So let’s rather focus on the more important drivers of the investment outlook, inflation and how interest rates respond to it.