Ed Cole
speaker
303 appearances
1 recordings
1 series
first heard Jun 2026
last heard 29 Jun
Ed Cole’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Jun 2026 with 1.
Appearances
It starts to feed inflation expectations, and it's very, very hard to get it down again.
That doesn't mean that what we saw in 2022, inflation was high single digit.
It doesn't mean that's what we're going to have.
But what it does mean is that what we're used to, which is inflation being at or around the targets of all central banks at about 2%, that looks increasingly unlikely.
And the reason we would then worry about that is it means that you can have environments where the hands of central banks can be more tied in terms of their response to a crisis.
If they're faced with a crisis that's driven by inflation, they may well be raising rates into that, which is what we saw in 2022.
And if they're faced with a crisis where the inflation is very sticky and they don't have enough conviction that it's going to roll over, they may not be able to provide what in markets we call the central bank put, the protection that we're used to.
And so that can mean that all of the reaction functions and interactions that we've seen over the last 30 years can start to change.
Yeah.
And again, I have to be humble.
That could be the case.
But I think it becomes more difficult when inflation remains thick.
Yeah.
And then you have to ask how robust is the portfolio that you're sitting with?
How much is it an artifact of the old regime?
And how much is it something that's actually robust to a changing world where we don't entirely understand where all the risks are coming from?
Well, we can go a bit back to the conversation we had a year ago, which is you diversify where your equities are.
I think if we sort of think about it in terms of styles, I think higher inflation plus greater fixed capital investment in economies.
And that fixed capital investment is, you know, capex.
That's a function of all of the reshoring or energy expansion, all of these sorts of things.
Showing 181–200 of 303 · page 10 of 16
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