From BlackRock: The “reflation trade” that began in late 2016 has lost steam. Russ Koesterich discusses what comes next.
Back in late 2016 it seemed terribly simple. Growth and inflation would rise on the back of U.S. fiscal stimulus. Investors would buy cyclical companies, particularly U.S. small caps, and sell bonds. Four months later, the reflation trade, while not quite dead, seems less a sure thing.