Armstrong: Times call for a robust strategy

With stronger than expected inflation readings in the eurozone, China and the US this month and the UK continuing to dramatically overshoot its inflation target, investors should be looking to protect their portfolios from the consequences of continued inflation.

The West is suffocated by its huge debt and deficits and we believe inflation is the inevitable end game for almost every Western government and central bank. Monetisation of their debt is much more palatable for politicians than the alternatives of budget cuts or default. Worries ranging from the outlook for AAA US debt to the timing of Greece’s inevitable restructuring or default on its debt have seen equity markets sell off. Standard & Poor’s put a ‘negative’ outlook on the US’ AAA credit rating, pointing to rising budget deficits and debt. S&P made a similar change with respec...