30 Aug 2021
A New Economic Cycle: Reflation
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The IMF (International Monetary Fund) is forecasting a global reflation cycle with faster economic growth, higher inflation, ongoing monetary stimulus and fiscal stimulus all because of the pent-up demand resulting from supply shortages caused by the COVID-19 pandemic.
If correct this means a global spending boom over the next 2 years.
Click for chart.
This is good news for economies, good news for business and good news for investors.
The only problem is that forecast are often misleading.
As Benjamin Graham taught, just remain invested according to your appetite for volatility and when fear and panic take hold, react by buying more quality assets at discounted prices.
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