Leifbridge Podcast
Inflation, Deflation & the Dollar Dilemma
In the latest Investment Brief podcast, host Neil Williams is joined by Ernst Knacke and Stewart Abrahart to discuss inflation risk, deflation pressures and the shifting role of the US dollar in global markets.
They explore the competing forces shaping 2026: structural reindustrialisation, AI-driven capital expenditure and energy demand on one side, and labour market softness and housing disinflation on the other. With inflation and deflation risks finely balanced, the discussion turns to what this means for asset allocation, duration risk and portfolio positioning.
The team examine how investors should think about short-dated inflation-linked bonds, conventional government bonds in a deflationary scenario, and the importance of genuine diversification in a changing investment regime. They also consider whether the US dollar’s traditional safe haven characteristics are evolving, and what that could mean for global capital flows.
This episode builds on the themes explored in our January Monthly Review, authored by Ernst Knacke.
Listen in on the conversation below
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