PDO - Cyclical Outlook Key Takeaways: Dealing With An Inflation Head Fake

• Global growth looks set to rebound even more strongly in 2021 than we had anticipated in our January Cyclical Outlook.
• Over the next several months, a combination of base effects, recent increases in energy prices, and price adjustments in sectors where activity ramps up is likely to push year-over-year inflation rates significantly higher.
• Investors should look to maintain portfolio flexibility and liquidity to be able to respond to events in what is likely to be a difficult and volatile investment environment.
• We see modest upside for commodities, driven by accelerating global growth, investment in infrastructure, and generally tight levels of current inventories.

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