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Top of Mind: Return of Reflation

20 JAN 2017

The prospects for “reflation” are top of mind for investors entering 2017. After a prolonged period of inflation well below the Federal Reserve’s target, market participants’ inflation expectations have risen with the US presidential election and optimism for fiscal stimulus. Goldman Sachs Research’s Allison Nathan explains the shift and its early impact on asset markets. 

The key question for investors at this point is how long this reflationary theme can continue. In order for equities to continue to perform alongside higher inflation and higher rates, we will need to see better economic growth.

- Allison Nathan

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