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Investment Insights Q3 2021: Inflation fixation

Last Updated: September 30, 2025

During the period, government bond markets stabilised as investors gained confidence that policymakers won’t have to renege on pledges to keep the monetary stimulus flowing. And corporate bond spreads (the extra yield offered over government bonds for taking on the additional risk of default) fell, signalling investor confidence that recent rises in inflation will not hinder the economic recovery.

  • Global Economy
  • Economy
  • Markets
  • Investments
  • Investment Insights Report
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Looking for the ‘stag’ in stagflation

Last Updated: September 30, 2025

Global equity and bond markets had a bumpy end to 2021 as investors began to fear the worst of both worlds — stagnating output and persistently rising inflation, that nasty combination called stagflation. While we do think inflation will begin to fall back from the spring, there is considerable uncertainty around its outlook. However, fears of stagnating growth look overdone.

  • Investment Insights
  • Stagflation
  • Inflation