David Jane: What could possibly go wrong? Well …

Inflation inflating

clock • 4 min read

Against the current apparently bullish background, it pays to consider what might go wrong, says David Jane, before going on to pick out the prospect of inflation surprising on the upside as one significant contender

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read
Spring Budget 24: Chancellor unveils long-term UK growth plan

Spring Budget 24: Chancellor unveils long-term UK growth plan

Includes British ISA launch and further NI cut

clock 06 March 2024 • 1 min read