Fidelity Manager Bets on Rising Inflation Before Iran War, Gains as Oil Hits $100/bbl

According to Fidelity International portfolio manager Michael Riedel, he profited from betting on inflation before oil prices surged above $100 per barrel following the Iran conflict. Riedel had purchased U.S. and UK inflation swaps months earlier, betting that inflation would rise despite market consensus at the time suggesting price pressures were easing. “Given multiple rate cuts expected by global investors, Middle East conflict risks are absolutely not reflected in rates,” Riedel said in an interview. Despite slightly reducing his position, he continues to hold the inflation swap contracts.

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