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Inflation Shock Tears Up Trader Playbooks From Stocks to Bitcoin

  • U.S. CPI beat has sent investors looking for inflation hedges
  • Prices climbed by the most in three decades in broad move
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Roger Ferguson on Inflation Spike, Hunt for Fed Chair

The latest surge in U.S. consumer prices is the strongest blow yet to views inflation is transitory, sharpening the focus among investors on how to position as risk assets swing.

Value shares, digital currencies, gold and bets on a flatter yield curve are seen as some of the potential beneficiaries from a higher inflation environment, after U.S. prices climbed by the most in three decades. The data sent Treasuries and tech stocks tumbling and pushed the dollar to near a one-year high as expectations mount the Federal Reserve will have to raise interest rates sooner rather than later.