219. Currencies, corrections … and inflation!

James Mahon, co-manager of the SVS Church House Tenax Absolute Return Strategies fund, tells us about some deflationary forces that are starting to come through and why he thinks inflation could peak in the next few months. He explains what the ‘yield curve’ can tell us about an economy’s health and why bonds that are due to mature in just a few years’ time are more attractive than those that have a long time to maturity. James also discusses the fall in the value of the pound versus the US dollar, tells us which parts of the UK equity market are now looking good value, and closes with details as to why floating rate notes can be very useful investments.What’s covered in this episode:Deflationary forces = corrections to commodities’ pricesInflation peakingThe Fed Reserve and its effect on inflationCounterintuitive downward sloping yield curvesThe dominant US dollarExtraordinary moves in the index-linked gilt marketThe potential for very high returns from short-dated bondsExploiting mispricing opportunities in volatile periodsFloating Rate Notes and their benefits for investorsMore about the fund:SVS Church House Tenax Absolute Return Strategies is a multi-asset fund, which invests directly in assets, rather than using the ‘fund of fund’ route. It targets positive returns over rolling 12-month periods. The managers place a heavy emphasis on capital preservation, and it is one of the few absolute return funds with a track record which goes back beyond 2008 and the global financial crisis.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.