{"id":704,"date":"2021-02-26T01:54:37","date_gmt":"2021-02-26T01:54:37","guid":{"rendered":"https:\/\/halcyonpw.com.au\/?p=704"},"modified":"2021-02-26T01:54:38","modified_gmt":"2021-02-26T01:54:38","slug":"market-update-inflation","status":"publish","type":"post","link":"https:\/\/halcyonpw.com.au\/market-update-inflation\/","title":{"rendered":"Market Update | Inflation"},"content":{"rendered":"\n
The backbone of modern portfolio construction has been blending an allocation of equities and bonds. This has served investment managers well for decades. Particularly since the mid-1980s, portfolios have benefited from declining inflation, which has driven down bond yields, increasing the price of bonds (and other asset classes as well, including equities).<\/p>\n\n\n\n
As the below chart shows, since the early 1980\u2019s, an exposure to US Government 10-year Bonds (blue line) would have generated strong returns as yields reduced over the decades.<\/p>\n\n\n\n