Will inflation kill the bull market?

The low base last year and re-opening angsts have caused temporary supply bottlenecks and labour shortages and contributed to higher inflation readings, says the writer.
Financial markets face inflation risks in the coming months, but it does not signal the onset of a bear market, says the writer. PHOTO: REUTERS
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SINGAPORE - Inflation fears have been at the forefront of recent market volatility - and this is likely to continue, and perhaps even intensify, in the second half of this year.

However, it may not derail the stock markets, as the broader macro-outlook is still positive, and valuations are not excessive.

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