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Inflation: is there still too much complacency?

Volatility has risen in stock markets but inflationary pressures could continue to mount.
Inflation: is there still too much complacency?
  • Inflation expectations change the dynamic of investors' required returns from shares
  • Valuations are once again being scrutinised
  • Companies this week include Treatt, Diageo, Spirax-Sarco, Greggs, Morrisons and Redde Northgate  

For me, the whole point of investing is to grow the buying power of your money so that it will buy more stuff tomorrow than it does today. This means that whatever you invest in has to grow in value faster than prices in general.

For the best part of 30 years, inflation has not really been a concern for UK investors apart from the odd spike in years such as 2011. This has made the task of beating inflation not as difficult as it was in the 1970s and 1980s.

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