A top investor at the world’s biggest hedge fund says he does not expect a repeat of the “Great Inflation” that took hold in the 1970s, in the latest sign that many big money managers are positioning for more subdued price pressure.
Bob Prince, who runs Bridgewater Associates with Ray Dalio and Greg Jensen, told the Financial Times that long-running deflationary forces would eventually curtail recent price rises and while “you are going to get some inflation” it would be “moderate”.
The co-chief investment officer’s comments come during a furious debate on Wall Street over whether a buzzing economic recovery, a flood of fiscal and monetary stimulus and supply chain troubles will cause a lasting surge in prices for goods and services. The consumer price index, one of the most closely watched inflation measures, soared last month by the most in 13 years at a year-on-year pace of 5 per cent.