Inflation Is Back! Now What?
As oil, heating, and food costs ramp back up, how will the inflationary impact of higher commodity prices affect the stock market and how should we prepare portfolios? In this week’s update, we are going to discuss how rising energy and food prices, combined with a gradual slowing in GDP growth, could be setting the market up for a stagflationary environment in the second half. We will also look at what portfolios’ strategies have worked and not worked during similar historical periods.
Key Takeaways
- How we believe the impact of rising commodity prices started to impact interest rates.
- Energy has quietly outperformed technology and consumer stocks over the past month.
- We think energy & copper are facing generational supply shortfalls.
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