(MT Newswires) -- Eric Veiel, CIO of T. Rowe Price, takes a measured approach to persistent inflation and the risk of a 1970s-style scenario. At present, T. Rowe Price maintains a neutral position between equities and bonds in its asset allocations. It stresses its interest in commodities, overweighting energy in its equity portfolios.

In Veiel's view, the post-pandemic period marks a shift in the economic paradigm, from an environment of extremely low interest rates to an era requiring a finer, more targeted analysis for investment decisions. This change requires a rigorous selection of assets, in contrast to the previous trend where risky assets were favoured almost systematically.

In terms of sector allocation, T. Rowe Price is favouring energy and healthcare, taking a neutral position on technology and reducing its exposure to the financial and industrial sectors.

Despite expectations of high interest rates over the long term, Veiel expresses some reservations about the financial sector, suggesting that the benefits of a higher interest rate environment may already be built into current valuations.

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