The S word. Strategist now expects ‘stagflation lite’

Bank of America’s research investment committee use the S word, if not outright commit to it. 

“BofA Research forecasts no recession, but slow growth, sticky inflation, and higher interest rates and bond yields; the overripe whiff of stagflation.

The bank says most portfolios still own too many assets priced for a world of 2% inflation, growth and interest rates. They give several reasons for what they call a 5% world.

It will be painful for the $70 trillion of tech, growth and debt assets priced for the stable macro regime, they say. 

Steve Goldstein MarketWatch 10 August 2023 

https://www.marketwatch.com/story/stagflation-has-disappeared-from-the-lexicon-these-analysts-are-bringing-it-back-709b6765