Investors could not be blamed for feeling a bit queasy at Donald Trump’s whiplash approach to tariffs.

What does it mean for inflation and markets?

“The tariff threat does add to this argument that inflation isn't about to come down anytime soon,” says Pendal’s head of bond strategies Tim Hext.

“The market is right to be a little bit concerned. Obviously free trade – or some version of free trade – is generally to the benefit of both parties.

“The law of comparative advantage says you end up focusing on what you are a cheap producer of.

“If you start throwing sand into the gears of free trade that’s not a good thing.

“Ultimately, I think it is bad for growth and will mean slightly higher inflation, but not enough to suddenly cause rate hikes in the near future.”

It creates a lot of short-term noise, but fortunately investors with a medium-to-long-term time-frame can leave it to people like me to worry about that."

Tim says investors should hold course for now.

In the podcast Tim lays out his latest thinking on fixed interest investing.


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Find out more about Pendal's fixed income strategies at pend.al/fixedinterest

Pendal is a global asset manager. Find out more at pendalgroup.com

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This podcast is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It’s been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients’ individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.

The information in this podcast may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.

Any projections contained in this podcast is predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.

Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.

For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website www.pendalgroup.com

Investors could not be blamed for feeling a bit queasy at Donald Trump&rsquo;s whiplash approach to tariffs.
What does it mean for inflation and markets?
&ldquo;The tariff threat does add to this argument that inflation isn't about to come down anytime soon,&rdquo; says&nbsp;Pendal&rsquo;s head of bond strategies Tim Hext.
&ldquo;The market is right to be a little bit concerned. Obviously free trade &ndash; or some version of free trade &ndash; is generally to the benefit of both parties.
&ldquo;The law of comparative advantage says you end up focusing on what you are a cheap producer of.
&ldquo;If you start throwing sand into the gears of free trade that&rsquo;s not a good thing.
&ldquo;Ultimately, I think it is bad for growth and will mean slightly higher inflation, but not enough to suddenly cause rate hikes in the near future.&rdquo;
It creates a lot of short-term noise, but fortunately investors with a medium-to-long-term time-frame can leave it to people like me to worry about that."
Tim says investors should hold course for now.
In the podcast Tim lays out his latest thinking on fixed interest investing.
 --//-- Find out more about Pendal's fixed income strategies at <a href="https://www.pendalgroup.com/products/asset-class/australian-fixed-interest-funds/">pend.al/fixedinterest</a>
Pendal is a global asset manager. <a href="https://www.pendalgroup.com/">Find out more at pendalgroup.com</a>
--//--
This podcast is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It&rsquo;s been prepared without taking into account any recipient&rsquo;s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients&rsquo; individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.
The information in this podcast&nbsp;may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.
Any projections contained in&nbsp;this podcast&nbsp;is predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.
Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.
For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website&nbsp;<a href="https://aus01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.pendalgroup.com%2F&amp;data=05%7C01%7CDavid.Higgins%40pendalgroup.com%7Cfdc46f1ca2c249af188908db566608e3%7C82bfe2773f1645a49ff4f40692b556b9%7C0%7C0%7C638198768471544474%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&amp;sdata=bo%2FK353stl%2BbgZg2TrxbQ2AY6%2FIRTSbtirIKerFH8Pc%3D&amp;reserved=0" data-auth="NotApplicable" data-safelink="true" data-linkindex="7">www.pendalgroup.com</a>

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

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