A lot of the top investors of the world have turned down the various government bonds of different developed countries because of the possibility of inflation.
Figures extracted this week showed that the UK consumer price index was at 3.7% as well as the borrowing cost of Britain at an eight month high at 3.72 triggered fears in the investors more than ever.
For the first time in two years, inflation in Europe rose to more than the predicted figure from the European Central Bank.
This caused many homeowners to sort out their mortgage rates with many lenders giving cheap deals and low interest rates.
A long time investor from Singapore, Jim Rogers said that the governments from Europe and the US are doing all that they can to hide the fact that inflation is at its highest these days. However, evidence shows that inflation in inevitable and what investors should do is just avoid bonds and carry on with the commodities, instead.
Since summer of 2010, there have been a lot of expectations of inflation in various markets. There were a lot of cases of break even rates that fuelled the expectations and predictions of a lot of financial analysts and investors. Inflation rates in various countries are: US at 2.2%, UK at 3.1%, and Germany at 2%.
In a survey done by the Northern Trust revealed that 62% of investors expected that in six months, there will be a big global inflation event, while 53% of them expect interest rates to increase during the first quarter of 2011.
Keep Up-To-Date
