Central banks have injected massive amounts of stimulus to address the economic crisis sparked by the global pandemic, and have signalled that yields are likely to be lower for longer, as they shift focus from containing inflation to reflating economies. Some may argue that it is rational to think that central banks will continue to bail out investors, as they have done for decades. In the post GFC world, inflation risk has been skewed to the downside with central banks fighting against disinflation and deflation – and the market is potentially under-pricing inflation risks going forward. But that comes at a price. Liquidity should always be a key consideration when building a portfolio. Keep it high and have some dry gunpowder, ready to take advantage of opportunities that lie ahead in a whole new world. - Mark Kiely, Antares Capital. Earn 0.50 CE/CPD hrs on Portfolio Construction Forum