How will assets react to higher inflation and all it brings?

InÌý theÌý firstÌý report ofÌý thisÌý inflationÌý series,Ìý ÃÛ¶¹ÊÓƵÌý EconomicsÌý teamÌý laidÌý outÌý ourÌý sub-consensusÌý viewÌý onÌý inflation,Ìý butÌý alsoÌý identifiedÌý heightenedÌý marginsÌý ofÌý error.Ìý InÌý thisÌý secondÌý report,Ìý ÃÛ¶¹ÊÓƵÌý globalÌý strategistsÌý &Ìý sectorÌý specialistsÌý presentÌý aÌý frameworkÌý whichÌý distils the countries, factors, industries and currencies most positively exposed to higher inflationÌý andÌý identifyÌý painÌý pointsÌý beyondÌý whichÌý inflationÌý takesÌý returnsÌý lower.Ìý WeÌý quantify how crosscurrents net out when inflation, rates & growth move together. We answerÌý howÌý farÌý ratesÌý canÌý rise,Ìý whatÌý USÌý exceptionalismÌý mayÌý meanÌý forÌý theÌý dollar,Ìý whetherÌý theÌý windowÌý ofÌý EMÌý outperformanceÌý isÌý stillÌý open,Ìý whetherÌý commoditiesÌý areÌý entering another super-cycle, and if higher rates will increase default risk. We assess the driversÌý andÌý longevityÌý ofÌý theÌý ValueÌý rotation,Ìý andÌý whatÌý thisÌý meansÌý forÌý regionalÌý performance.Ìý FromÌý aÌý supersetÌý identifiedÌý byÌý ourÌý framework,Ìý ourÌý globalÌý equityÌý analystsÌý narrowÌý downÌý 40Ìý BuyÌý ratedÌý stocksÌý acrossÌý US,Ìý EuropeÌý &Ìý APAC,Ìý whichÌý shouldÌý doÌý wellÌý inÌý aÌý higher inflation regime.

Top 15 investor questions on market implications of inflation

  1. Higher inflation, yields, growth – what's the net impact on different assets?
  2. Value Rotation: Just getting going, or nearly done?
  3. Will the markets force the Fed to move quicker?
  4. How far can long end yields rise?
  5. Know your tantrums: When do rates moves hurt?
  6. Do stronger growth and inflation boost the dollar?
  7. How relative pricing power impacts US equity rotations?
  8. Can European equities outperform if Value doesn’t?
  9. Why Japan may be the winner in APAC?
  10. Can EM assets still perform?
  11. Will higher US/European demand for commodities compensate for a slowing China?
  12. Is oil headed into another super-cycle?
  13. Why is gold hurting if inflation is going higher?
  14. Will global rates be able to catch up with the US?
  15. Will higher rates and inflation cause more defaults?