Stagflation Risk Has Investors Sinking Billions Into Hedges
- Likes of Amundi, abrdn and Vanguard prep for bad economic news
- Europe seen facing a regime of high inflation, negative growth
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It’s the next big market call that could enrich traders across Wall Street: The raging global energy crisis and ever-more hawkish central banks knock key economies into 1970s-style stagflation.
It’s a long shot for now, but anxiety is building among money managers that this market scenario -- out-of-control inflation just as growth slumps -- will eventually come to pass, especially in Europe.