Mind the Gap
by Mark Wright, CFA
The latest elevated CPI print of 7.5% has spooked investors this year, triggering volatility in both bond and equity markets. In trying times, it sometimes helps to take the long view. In a recent paper the Bank of England has taken this advice to the extreme, looking back 800 years to the 14th century to calculate the average global GDP-weighted inflation rate of just 1.51%1. Unfortunately, 800 years is not a particularly sensible investment horizon for most people, but there are plenty of other more relevant periods for us to examine when considering the importance of current economic events
Market Snapshot
- Global equities declined -1.9% last week
- The Russian invasion continues with 2.5M Ukrainians having fled the country
- Brent crude fell -4.6% to 118.11 a barrel, and the USA banned oil imports from Russia
- Gold gained +0.9% to $1970.7 per ounce