How Long Is “Transitory”?
The sharp rise in energy prices has fueled the inflation debate in recent weeks. Is inflation really only temporarily high? The issue is likely to continue to preoccupy financial markets in the coming months, and investors must be prepared for the fact that it could take even longer for inflation to settle down. As a result, interest rates are likely to rise and market volatility and the risk of setbacks will remain high. However, as the economy remains robust and corporate earnings continue to rise, we expect positive returns for a multi-asset portfolio in the medium term and are cautiously optimistic that the year will end on a positive note.