Deflation: the race for yield is on

Roni Green of GF Asset Management highlights the unpredictability of the current economic climate and possible consequences, particularly in relation to deflation and its impact on large corporations including Walmart and Home Depot. Roni clarifies that these retailers are expecting deflation in upcoming months, creating a widespread buzz.

Additionally, Coles also reveals potential deflation in their financial insights, raising more conversations about financial changes related to inflation and interest rates.

Roni also shares his opinions about existing apprehension concerning unintentional policy errors by central banks, especially the Federal Reserve. He believes there's a risk that they might maintain high interest rates for an extended period due to previous miscalculations tied to inflation. He notes the significant decrease in bond yields over the past weeks, hinting at changing economic circumstances and stressing the possible deceleration in the fast-moving business world.

In conclusion, Roni underscores the need to attentively watch the markets as he talks about the noteworthy decline in the 10-year bond market and the indicative signals from retail sales, PPI, and other indications of potential slowdowns from the US market. Further, he shares his strategy for GF Asset Management's portfolio, considering the current economic dynamics, revealing plans to add on duration cautiously given the prevailing volatility.