The latest survey by BofA Securities showed that 35% of respondents see inflation as the biggest tail risk to their portfolios. Even though global investors are unnerved by the latest inflation data, market experts are of the view that the ongoing stock market rally is unlikely to reverse only due to inflation. "Over the past few decades, inflation has not (obviously) been a hindrance to the stock market as it’s been “pro-cyclical" in nature," she added. He further added that not only will the bull market in stocks continue with strong profits, but the bond yield will go to 2% by year end and 2.5-3% next year. Interestingly, in spite of inflation fears, 78% of BofA's survey respondents expect global profits to improve over the next 12 months, down 6 percentage points compared to the previous month, but still near all-time highs.

Source: Mint May 19, 2021 05:26 UTC