Investors should be prepared for the biggest inflation scare since the 1980s, warned Christopher Wood, global head of equity strategy at Jefferies in his weekly note to investors, GREED & fear.
“For now investors should be prepared for the biggest inflation scare since the early 1980s, and wait to see how the (US) Fed reacts. In the meantime, Treasury bonds are likely to sell off more, and cyclical stocks rally more, before any such tapering scare,” Wood said.
That said, he believes that if inflation really does return on a longer term basis, it would mean that equities and bonds