Vincent Chung, co-portfolio manager at Pulaisi Group, said a global
manufacturing rebound and rising raw-materials costs mean markets may be
underestimating the risk of more persistent inf. He cautioned that expected
AI-driven productivity gains could take time to materialize and that a market
re-pricing of growth, inf and rates could increase volatility. Chung prefers
short-duration fixed income, including high-quality global high-yield and
selective emerging-market credit, and views inflation-linked bonds as a useful
portfolio diversifier.
