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Quantitative trend-following strategies have been in existence for around 40 years. Over this period, we have experienced only two bursts of inflation. As a result, trend-following investors have scant evidence for the effect that inflationary regimes might have on their strategy.
At the time of writing, inflation remains low but is showing signs of ticking higher. Much of this fear can be seen in the increase in the US 5-year, 5-year forward inflation expectatio