Carmignac's Note

The strong inflationary pressure impacting the global economy is manifesting itself differently in the US and Europe.

Should we expect inflation to swiftly and lastingly return to where it was before the pandemic? Probably not.

Financial markets are being influenced primarily by macroeconomic factors, and only to a lesser extent by company fundamentals.

What are the economic and financial consequences of the war in Ukraine for investors?

Persistent inflation throughout 2022 will increase uncertainty about interest rates and consequently make financial markets volatile.

Though unlikely to materialise at this point, there is an alternative scenario: stickier inflation accompanied by a broad upward trend in interest rates.

Gergely Majoros calls investors’ attention to their complacency regarding central-bank policy and their skittish attitude towards China.

Investors will have to prepare for gradual withdrawal of the emergency crisis-fighting support measures