THE 1960s are remembered for radical social reform, political upheaval and war. Often forgotten is that they were also a time of rising inflation – and in this they may hold disquieting lessons for us today.
One of our key calls for 2018 is that consumer price inflation in the US will become an increasing issue for markets. In a turnaround from 2017, when unexpectedly benign inflation helped create a Goldilocks environment for risk assets (not too hot and not too cold), this year we expect prices to surprise on the upside.