Will inflation kill the bull market?

Inflation risks loom in the coming months, but that doesn't signal onset of a bear 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
Gift this subscriber-only story to your friends and family

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.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Follow ST on LinkedIn and stay updated on the latest career news, insights and more.

A version of this article appeared in the print edition of The Straits Times on June 15, 2021, with the headline Will inflation kill the bull market?. Subscribe