Focus: Inflation and deflation.

Investment Adviser, June, 2009

Byline: Steven O'Hanlon

The dual threat of deflation and inflation is causing havoc in the increasingly uneasy global economy

Rarely has the saying 'caught between the devil and the deep blue sea' been so apt than at this juncture in the global financial crisis.

In the boom years, the words 'inflation' and 'deflation' - neither particularly desirable - were whispered with caution. Now they are being bandied about with gusto, as the world faces up to the scale of the current financial mess.

Affiliation to a particular camp - inflationary or deflationary - is proving divisive and having a profound impact on investment decisions. In the bond universe, this dual threat is creating a tug of war between the crowded safety of...

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