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?
13 May 2021
Authors
genie-market-comm

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.

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Disclaimer

This article was previously published on Tilney prior to the launch of Evelyn Partners.