Clearwater Analytics released a flash poll of some 100 institutional asset managers and owners on Friday that asked how they are adjusting their investment strategies as a result of surging inflation.
Two-thirds of respondents, who represent more than $4 trillion in assets under management, said inflation is non-transitory, and they expect it to have a material effect on the U.S. economy.
Asked about their rate expectations, a large majority of asset managers said they expect a 100- to 200-basis-point increase from current rates.
As to where inflation will be in three years, 40% of investors think consumer price index growth will settle in at 3% to 4% — a lot higher than the long-term level of around 2% in recent decades. Only 10% of investors said they expected inflation to persist at high levels of 5% or more.
Thirty-two percent expressed hope that inflation will return to long-term levels below 3%.
About 30% each of poll respondents were insurers and asset managers; 13% were corporations; and 11% represented other segments, including governments.