Daily Chart 31/03/21

Daily Chart 31/03/21
Posted on: The Daily Chart
31/03/2021

GFI Daily Chart 31/03/21

"History doesn't repeat itself, but it often rhymes."  is a quote that is often attributed to Mark Twain. The fear of inflation has started to be back on investor’s minds with the abundant monetary and government stimulus unleashed to fight the negative economic impact of the pandemic. We still see such a scenario rather unlikely because inflationary pressure, while starting to appear in input prices like commodities, all important wage costs have not seen noticeable increases over the past months. As prudent investors, we however look back at history to see what happened to different asset classes in an inflationary scenario like the 70’s. Here gold, commodities and value were the clear winners for investors over an inflationary decade.

High inflation as proxy for asset class returns

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