Deflationary Environment? Why your portfolio doesn't make sense.

Despite the market rhetoric of an incoming deflationary environment in the US, investors are more likely to expect an inflationary environment ahead as investor sentiment improves and consumption expenditure increases. Price growth is likely to persist and a relatively low interest rate environment would help to drive prices higher in the US market. It's likely that portfolios of investors, particularly US investors, would likely rebalance towards a more equity focused portfolio to hedge against higher inflation amidst the surge in prices across the US market.