Swell times: assessing inflation’s investment impacts
The level of inflation profoundly influences the global economy and financial markets. We haven’t had a sustained period of price rises for years. But with the pandemic – and the response to it by governments and central banks – potentially stoking price pressures, investors need to assess carefully the implications for their portfolios of a more inflationary environment. We offer a deep dive into inflation and its causes, explain why we think inflation risk has increased, and share our investment teams’ perspectives on what higher inflation would mean across asset classes and investment approaches.