The CIO of Legg Mason’s Western Asset Management says that despite the prevalent view, inflation is not rising significantly, and the “reflation trade” has gotten ahead of itself. The best opportunities? Emerging market debt.
On an aggregate level, assets in so-called “smart beta” ETFs are much larger than those in active, leveraged and inverse ETFs. But the picture is more nuanced when broken down by asset class.
The technology sector bucked the trend, posting the largest inflows since March. Financials, on the other hand, posted the largest outflows, as yield curve flattens and investors take profits.
