March 04, 2022

From Stagflation To Recession?

The Russia/Ukraine conflict is unleashing a stagflationary impulse on the world economy. This creates a dilemma for fixed income investors. Should portfolio managers pay more attention to rising inflation and be underweight duration? Or should they focus on weakening growth and be overweight duration? In our latest Global Fixed Income & Currency Strategy report, we make the case that investors should place greater weight on growth over inflation.