Both deflation and stagflation are likely, given rising inflation and slow global economic growth. Adriaan Pask of PSGWealth discusses how investors should prepare investing financialplanning
Over the past two years, the world witnessed one of the fastest bear markets and the quickest subsequent recovery, thanks to the pandemic. Now, rising inflation and slow global economic growth have led to deliberations between experts about what will come next – deflation or stagflation? Both are likely and will have a material impact, which investors will need to plan for. Globally, we have seen central banks aggressively raise interest to bring inflation down.
If you look at some of the key drivers of inflation, like oil or energy prices, these might recede over the short-term given how hard they have run in recent months. However, a lack of investment in this sector puts a structural tailwind behind the prices. This results in a possible scenario that sees a high base moving lower and then a brief period of deflation, followed by a longer period of stagflation. It is essential that this potential scenario is accommodated in your investment strategy.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Is South Africa heading for stagflation or deflation or both? | The Citizen🔒Rising inflation and slow global economic growth, after one of the quickest recoveries following one of the fastest bear markets thanks to the pandemic, is making experts ask the same question.📉📈❓ economy
Read more »
LISTEN: Who is spying on André de Ruyter? | The Citizen'At this point, I am keeping my head down and doing my job best I can.'
Read more »
Zondo Left Behind As Royal AM Fall To SuperSport | SoccerladumaSuperSport United got back to winning ways after overcoming Royal AM, who were without coach Khabo Zondo on the touchline.
Read more »
Royal AM Part Ways With Another Coach? | SoccerladumaNews reaching the Siya crew is that Royal AM have parted ways with coach Khabo Zondo. SLSiya Read more:
Read more »