What are the risks to markets with the releasing of the inflation genie?

In this edition:

• Against a backdrop of vaccine rollouts and easing lockdowns, year-to-date the MSCI All Country World Index (ACWI) saw total equity returns (including dividends) up by 8% in sterling terms.
• Accommodative fiscal and monetary policy, together with lockdown easing, provides support for the global recovery.
• The IMF has forecast global real GDP growth of 6% in 2021 – that’s the fastest rate since records began back in 1980.
• The prospect of growth this rapid is leading to concerns of overheating.
• Inflation may run hotter for some time.

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