As economies recover from last year’s collapse in demand, partly on the back of large-scale government budget spending and amid ultra-low interest rates, investors can expect inflation to bounce higher as well, especially in sectors that were hit hard in the COVID-induced slump.
How confident can we be that, as maintained by leading central banks, this is only a temporary, recovery-related bump? And to what extent will even a relatively short-lived spike in inflation trigger the kind of ‘normalisation’ of equity valuations that looks like it is overdue?
You can now read the full whitepaper at the link below
