Partner Content: Why investors need to be "humble" about making inflation predictions this year

clock • 1 min read

A reawakening of the global economy — boosted by pent-up demand and unprecedented government stimulus — has stoked investor fears of higher inflation. Many investors feel those fears may be exaggerated amid ongoing weakness in the labour market and the slowing pace of vaccinations.

Yet according to Robert Lind, economist at Capital Group, investors should try to remain "humble" in terms of making predictions about inflation following the demand/supply shocks the economy has seen this year.

"As someone who has been around for a long time in the macroeconomic sphere, policymakers who believe inflation is likely to be transitory can often be proved wrong. There are some reasons, in my mind, to be a little bit more concerned that inflation might be more persistent," he says.

Click here to hear Robert Lind's views in full, and learn more about the possible implications of inflation on equity markets in H2 2021.

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