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Inflation or Recession: Which Should You Fear More?

Prices are surging and the odds of a slowdown are rising, too. Money managers offer suggestions on how to prepare your portfolio now.

Shoppers inside a grocery store in San Francisco, California. 

Shoppers inside a grocery store in San Francisco, California. 

Photographer: David Paul Morris/Bloomberg

One is here already. The other is lurking right around the corner. Which should worry investors more?

It’s a question that’s increasingly hard to ignore as the twin troubles of inflation and recession loom over portfolios and pocket books. US prices in June rose the most since 1981. And the odds of a recession in the next year are now close to 50%, according to Bloomberg’s monthly survey of economists.