- Rob Arnott predicts inflation is more likely to surprise to the upside and growth to the downside.
- Value stocks, TIPS, and alternative investments are good hedges for these outcomes, he said.
- Looking long term, he said US small-caps and MLPs are among areas priced for high returns.
When it comes to future outcomes on two of the market’s most crucial inputs — inflation and economic growth — Rob Arnott says investors are underappreciating asymmetrical risks.