David Jane: What could possibly go wrong? Well …

2018 has continued where 2017 left off with strong rises in global equity markets - the UK excepted - and a healthy corporate bond market, at least in terms of new issues. The only cloud on the horizon appears to be the prospect of rising bond yields and interest rates as inflation creeps back into the system. Against this seemingly bullish background, it pays to consider what might go wrong. Among the more likely scenarios at present is that inflation rises much more rapidly than is currently considered likely. After 30 years of disinflation, the great majority of observers seem to beli...