In episode 3 of Inside the Markets, we’re diving into the themes we’re hearing most in client conversations – rising inflation, higher rates, and ongoing geopolitical tension.
To put today’s environment into context, we’re rewinding to the 1970s oil crisis to look at what drove the inflation spike, how policymakers responded, and what lessons still apply.
Back then, central banks lacked the independence they have today, with policy often influenced by political pressure. Combine that with loose fiscal policy and rising geopolitical tension, and you start to see some parallels with today, even if the policy backdrop itself is different.
So, while this isn’t a replay of the 1970s, it’s also not a world we can approach with old assumptions. Inflation today is being shaped by new structural forces, from supply chains to the energy transition, and may prove more persistent over the medium term.
We’ll explore the parallels, the differences, and what it all means for policy, markets, and investors, from interest rates to diversification, and how portfolios might need to adapt.
