Portfolio manager David Tulk explores global asset allocation as we look ahead to the second quarter of 2021. David Tulk is a portfolio manager on the Global Asset Allocation (GAA) team, and he thinks economic growth looks strong coming out from under the drag of the pandemic. He thinks that as conditions start to normalize, the pent-up demand, combined with stimulus, will make for a great combination. He does note that we also need to look at policy after the pandemic: a big increase in levels of public sector debt could be a catalyst for future inflation. As it stands, there are a lot of flows into inflation protection assets. The team has been focused on inflation protection since before the pandemic; an increase in inflation could increase the correlation between stocks and bonds. Because of this, it’s been vital for them to mitigate the shock of inflation for the funds they manage.
Recorded on March 3, 2021.