There are a number of signs that the economy is strengthening, said Russ Koesterich, head of investment strategy at Barclays Global Investors.
“In addition to the consumer confidence numbers, we had in April leading economic indicators up 1 percent and the cash markets have been thawing in the last few months, so I agree that things are getting better and the economy is stabilizing,” Koesterich told CNBC.
“[However,] the risk of inflation in the next 3 to 5 years is much greater than deflation,” he said. He recommended the following for long-term investors.
- Commodity producing countries like Canada and Brazil — rather than the U.S.
No immediate information was available for Koesterich or his firm.
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