Dec 12 BlackRock's strategist Richard Turnill:
* Says fears of deflation, dominant earlier in the year when
oil prices plunged, have faded in the U.S.
* Downgraded U.S. Treasuries, upgraded outlook for Japanese
stocks, and have moved neutral on European credit (from
* "Inflation expectations are rising due to pick-ups in
wages and growth, as well as likely fiscal stimulus"
* Since higher growth, inflation can benefit emerging market
growth without hitting currency values, EM assets holding up
* We expect treasury inflation protected securities (TIPS)
market pricing to keep edging up, which is why we favor TIPS
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