The market is pricing a rapid return to low and stable inflation. Supply-side risks threaten those expectations and heighten the attractiveness of real assets, writes Vince Childers, CFA, head of real assets multi-strategy at Cohen & Steers, in a recent report.
Despite key measures across most major economies showing few signs of normalization, the market continues to price in a rapid return to the “old normal” of low and stable inflation rates. However, tight labor markets and sticky wage growth warrant caution against these expectations.
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