Inflation: A very real threat on the horizon

After five years of ultra-low interest rates and strong returns in financial markets, investors are facing a subtle threat: inflation. Too little and growth could stall; too much and there would be few places where investors could turn. Markets have been buoyant since 2009 but some believe we have reached a fork in the road. In the US and UK, inflation and growth are at modest levels, and this is expected to continue. In Europe, however, growth is anaemic and inflation is falling. With low bond yields, equities hovering at all-time highs and interest rates on the floor, where does an ...