Inflation Could Be Persistent if Globalization Recedes
Is inflation transitory or here to stay?
To answer this question one of the factors investors may need to consider is the state of globalization. For decades, the cost of living in the developed world has been largely suppressed by cheap manufacturing and easy trade with the developing world. Now, in a post-pandemic world, nations are looking increasingly protectionist. Globalization may have stalled or could also be on the verge of reversing.
This is one of the reasons we believe inflation is here to stay.
Here’s a few more thoughts on this: The great inflation whirlwind…and how to face it