A paradigm shift for global markets
In recent years, markets have reacted positively to signs of inflation. Inflation has been indicative of improving conditions in the economy, and central banks have been encouraging it through artificially low rates and quantitative easing. In this Livewire exclusive, Gopi Karunakaran says this is all changing in 2018.
“We are now shifting into a bad inflation paradigm. A bad inflation paradigm is one in which markets become very concerned that there will be an overshoot of inflation; we’ll get too much inflation, and that will force central banks to tighten monetary policy much more aggressively than markets are priced for.”
In today’s video, Karunakaran makes his case that there could be a significant selloff in bond yields.
To watch the Livewire video click here.