QQEW - Mind The Uncertainty In The Short Term But Do Not Forget About Inflation

• Disinflationary/deflationary pressures are more likely in the near term according to our popular ST leading indicators.
• There is a lot of cash sitting on the sidelines at the moment, implying that investors are more worried about uncertainty than inflation.
• However, investors should underestimate inflationary pressures in the medium to long term.
• Bonds and equities both perform poorly when inflation rises too rapidly.

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