Inflation and Fed Policy Are on Collision Course, Page Says

• Inflation risk is a significant challenge, requiring active hedging strategies beyond traditional Treasuries.
• Recommended hedges include cash, short duration, real asset equities (energy, metals), and hedged equities.
• US earnings are 'amazing' (30% YoY growth vs. 13% expected) and the economy is growing at 6% nominal, with economic surprises trending up.
• The main risk is the 'collision course' between inflation and Fed policy, with the 2-year yield being a key indicator.

Sébastien Page discusses the 'meaningful challenge' of inflation risk and its impact on bond markets. He advises investors to stay invested, diversified, and actively hedge inflation, noting strong earnings and US economic growth despite the 'collision course' between inflation and Fed policy.