Where to invest if inflation takes off
With inflation over 6% in the US and at 3% locally, investors could be forgiven for worrying about what it could do to returns. But as Jasmin Argyrou from Credit Suisse points out, investors need not fear inflation – assuming they have exposure to equities in their portfolio.
“Inflation is generally a positive for equity markets because it’s a positive for earnings growth… When inflation rises, and inflation expectations rise, profit margins improve, earnings improve, and that goes with equity market performance.”
It’s not all good news though, inflation can eventually become a problem. However, Argyrou says we’re nowhere near that level currently.
In this short video, she explains Credit Suisse’s outlook for inflation, and how they’re positioned as a result.
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