PMIP US Chart 1

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PMIP US Chart 2

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What it means for investors

As we enter the later stages of the economic expansion, growth or inflation trends could lead to some increase in interest rates. In this environment, investors should consider an actively managed core bond portfolio to balance the need for diversification with the need to guard against rising rates. In addition, an allocation to inflation-hedging assets, such as inflation-linked bonds or strategies that invest in a range of inflation-related assets, could help investors navigate a more reflationary environment.