Analyst: Even if the US CPI is only slightly above expectations, it will trigger a market sell-off
ChainCatcher news, according to Jin Shi reports, BeiChen Lin, an analyst at Russell Investments, stated in a report that even if the U.S. inflation report released on Wednesday is only slightly above expectations, it could trigger a sell-off in the bond and stock markets. This investment strategist noted that last Friday's exceptionally strong U.S. employment report seems to have awakened concerns about inflation.He stated, "Although we believe that U.S. Treasury yields are attractive at current levels, we still think that unless yields rise significantly, it is best for investors to stick close to their long-term allocation ratios." Economists surveyed by The Wall Street Journal expect the U.S. CPI in December to increase by 2.9% year-on-year, up from 2.7% in November. The survey indicates that the annual core inflation rate is expected to remain unchanged at 3.3%.