Is stagflation around the corner?



Is stagflation around the corner?

The most challenging one though could be around the corner: stagflation. Stagflation, a period of high inflation and slow economic growth, is an oxymoron that is difficult and painful to overcome. It also makes assets increasingly hard to select.

What will stagflation mean for bond markets?

Bond market messages puzzle investors If bond markets are taken at their word, the world post-pandemic will be defined by stagflation, a toxic scenario that appears at odds with the bounceback indicated by robust economic data and record-high equities.

What is’stagflation’?

What is ‘Stagflation’. Stagflation is a condition of slow economic growth and relatively high unemployment, or economic stagnation, accompanied by rising prices, or inflation.

Should you invest in the stock market during stagflation?

All investments carry risks at any time. Those risks are heightened during periods of high inflation and low economic growth, particularly when things are finely balanced between stagflation and a recession. “Stagflation wouldn’t be good for anyone but some assets would likely be better than others.