Investors are preoccupied with inflation for good reason: It affects interest rates, public-equity valuations, private-equity access to capital and, ultimately, stock-price multiples. Yet confusion about inflation assumptions and forecasts could lead investors astray. In this report, Olga Bitel, partner, global strategist, discusses inflation and the factors that influence it. She explains why both aggregate demand growth and inflation may be higher over the next decade than in the 2010s, with major implications for asset allocation.
