Mundy: How I am protecting portfolios as central banks try to dodge deflation

Central banks may resort to 'helicopter drop' measures to stave off the threat of deflation, according to Investec's Alastair Mundy.

The manager of the £1.3bn Investec UK Special Situations and £2.5bn Cautious Managed funds said as consumer price index inflation threatens to go below zero, central banks may be forced to come up with more innovative measures. "Deflation seems to be the name of the game, and it is right to be concerned when we have mountains of government debt. The most obvious way to eliminate debt is through inflation, deflation makes it grow. "Despite the best interests of governments and central banks, we have failed to meet inflation targets. If deflation does take hold, central banks will get m...