Most global stock markets sold off heavily yesterday, the explanation being that inflation risks are being trumpteted by all and sundry now, even the US Treasury Secretary. I have already outlined my reasoning as to why I don’t think central banks will actually raise interest rates sharply, or if they do why it won’t hold back equity valuations in the medium term (Digging Deeper, in the May Watching Brief)
The bad news?
A market sell off is bad news insofar as the figure at the bottom of our portfolo valuations is now less than it was on Monday. Surely, inflation is bad news too? That is why governments and central banks want to control it?
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