Stagflation fears are rising – what could it mean for equities?

The conflict in the Middle East has pushed energy prices higher, triggering fears that the global economy may enter a period of stagflation. Although this environment is often seen as the most challenging backdrop for stocks, analysis suggests that equities can also perform more resiliently than expected in stagflationary conditions. In this article, Schroders explores: • The key challenges stagflation presents to companies and investors • How stocks have performed during periods of stagflation, what is and isn’t required for them to do well, and why selectivity matters • The performance...