PST - Stagflation Trap Is Here And There Is No Way Out

• A combination of loose monetary policy and emerging scarcities of goods and services throughout the global economy are causing a sustained inflationary environment.
• The supposed solution, namely to tighten monetary policy might have a counterproductive effect of triggering more inflation, as the increased costs of servicing debts will be passed on to consumers.
• While monetary policy may fail to reign in inflation, it will most likely cause a drag on economic growth.
• The investment environment will be very challenging going forward.  Success will be measured by whether or not portfolios will gain enough to keep pace with inflation rates.

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