What are the risks to markets with the releasing of the inflation genie?
What are the risks to markets with the releasing of the inflation genie?
In this edition:
- Against a backdrop of vaccine rollouts and easing lockdowns, year-to-date the MSCI All Country World Index (ACWI) saw total equity returns (including dividends) up by 8% in sterling terms.
- Accommodative fiscal and monetary policy, together with lockdown easing, provides support for the global recovery.
- The IMF has forecast global real GDP growth of 6% in 2021 – that’s the fastest rate since records began back in 1980.
- The prospect of growth this rapid is leading to concerns of overheating.
- Inflation may run hotter for some time.
Disclaimer
This article was previously published on Tilney prior to the launch of Evelyn Partners.
