Since then, the broad market has essentially gone sideways, though capitalization -
weighted indices such as the S&P 500 have recently clawed to new highs
on enthusiasm about negative interest rates abroad (which I believe actually reflect fresh deterioration in global
economic conditions across Britain, Europe, Japan, and China).
Inflation expectations vary with
economic conditions and so by varying the
weightings of nominal and inflation - linked bonds in a portfolio, investors can take views
on movements in those expectations.