Equities are absorbing an inflationary side effect | JUNE
In this episode we’ll be looking at the recent volatility in stock markets and whether concerns on inflation are justified.
Markets were spooked by concerns of a stagflation environment of high inflation and low growth. This followed higher-than-expected US inflation, where April headline CPI rose 4.2% from a year ago - the highest rate for 13 years - and a disappointing US non-farm payroll number for the same month to raise investor concerns about a sustained recovery. However, given that US and global 2021 real GDP growth is expected to grow at its fastest rate for decades, the risk of stagflation seems low.
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This episode was recorded on 27/05/2021
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The Pulse from Smith & Williamson
Investment Show: Equities are absorbing an inflationary side effect
Broadcast on Smith & Williamson at 09:00, 11th of June 2021
Available online from 10:00 on the same day .