Bond Guru Dan Fuss’s Inflation Alert Points to Market Challenges
- Ultra-low rates and fiscal spending risk more price pressures
- Fuss says there’s no outstanding value in fixed-income markets
Dan Fuss.
Photographer: Chris Goodney/Bloomberg
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Famed bond investor Dan Fuss recollects how spiking inflation in the 1940s and 1950s led to a sevenfold jump in the value of his family home. For him, a key trigger of that bout of price pressure is evident now.
The precedent is the way the Federal Reserve and Department of the Treasury are prioritizing cheap debt-financing costs to fund huge spending, the difference being the money is paying for once-in-a-generation pandemic relief rather than a war effort.