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Ruffer: forget new normal, this is old peculiar
by David Campbell on Jun 10, 2014 at 07:20
‘Let’s be clear, if inflation expectations drift into outer space there is no Yellen put. For a time all assets – except gold and a few other honourable exceptions – will generate negative real returns.
‘As much as central banks are adamant that they are in control of the inflation outlook they also need the inflationary surprise.
‘I don’t believe in the new normal; I believe in the old peculiar, the volatile, jumpy world where honest money is made and foolish
money is lost.'
Seven of the managers' eight largest positions are in inflation-linked securities, led by a 7.1% allocation to a 2017-dated inflation-linked US Treasury and a 5.6% allocation to a 2055 Treasury.
Over the last five years the Ruffer Investment Company portfolio has returned 48.32% versus an 88% return on the FTSE World. Having traded at a premium for much of the last five years the shares have in recent months fallen to a discount.
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by James Phillipps on Jul 25, 2014 at 14:49