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The Inflation Debate Is Returning to Markets Flush With Cash

The key debate on Wall Street is whether inflation is coming back with a vengeance. 

Greenback Dealers On Motorbikes Throw Cash Lifeline In Argentina
Photographer: Sarah Pabst/Bloomberg
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Perhaps the most challenging riddle for investors in the pandemic is whether another centuries-old scourge is going to return.

Inflation can wreck even the safest portfolio by eroding the value of investments for decades. But you would be hard pressed to find anyone among the younger generation of investors, within developed markets at least, who has faced it in any meaningful way. The last major episode was back in the 1970s and ’80s, and inflation has all but disappeared since the 2008 financial crisis.