37 days ago • Posted by Martin Boujol

Inflation can be a real deal-breaker for equity returns

As you can see on the chart below, the US S&P500 Comp under different inflation (or disinflation) environments can be radically different. Thus, investors should be aware of the strong impact that inflation has on equities.

Source: Gavekal, Macrobond

Equity returns are different in different CPI environments