An Inflation Breakout Would Be Worse for Markets Than a Depression
- ‘Moderate’ inflation problem would impose severe losses: GMO
- Higher consumer prices would shorten current business cycle
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Lowflation drove global markets to dizzying highs this year. Inflation could drive them off a cliff.
The risk for 2018 is that consumer price growth stages a comeback, roiling investor portfolios and corporate profits, according to investors and strategists. The consequent return of higher real interest rates would imperil bullish market psychology more than you might think.