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By Mike GITLIN, Head of Fixed Income at Capital Group
Rising inflation and slowing global growth are two dominant themes casting a pall over the current market environment. With increasing geopolitical uncertainty, tightening monetary policy, supply chain challenges and higher commodity prices at play, a period of global stagflation could potentially be on the horizon.
Navigating the foggy road to normal has never been more challenging but with a long-term lens, one can better understand the strong normalising effect that disinflationary forces such as rising debt levels, technological advancements, and ageing demographics, could have. Having a clear understanding of these can help investors better plot a path through the fog.
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