Striking a Balance: Risks to Growth Require “Light-Touch” Policy on Inflation

Inflation

The Franklin Templeton Investment Solutions assesses the likely path of economic growth and inflation through 2022.

PREVIEW

The rapid shutdown of global economies during the COVID-19 pandemic had a profound effect on consumer demand, supply chains and corporate earnings. As those economies continue the uneven process of reopening, the twin elements of increased demand and disrupted supply have acted to ratchet up inflationary pressures, all against the backdrop of COVID variants. Ed Perks, Chief Investment Officer of Franklin Templeton Investment Solutions, assesses the likely path of economic growth and inflation through 2022, the importance of monetary policy to financial market stability, and the implications for multi-asset investment strategy.

WHAT ARE THE RISKS?

 

All investments involve risks, including possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with investing in foreign securities, including risks associated with political and economic developments, trading practices, availability of information, limited markets and currency exchange rate fluctuations and policies.

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