Stagflation is the risk that eludes investors misplacing markets

Bloomberg/Liz Capo McCormick, Garfield Reynolds and Reade Pickert/5-1-2023

“Financial markets are caught up in a tug of war between lingering inflation and concern about a recession as they try to guess the next move by the Federal Reserve. That means investors are potentially ignoring a far more dangerous outcome: stagflation.”

USAGOLD note: Gold is among the assets favored by fund managers for a stagflationary economy, says Bloomberg BNN. Stagflation, it says, represents a “disturbing macroeconomic backdrop” for money managers.