Investors Brace for a Return of Stagflation

Investors are now seriously considering the possibility that war in the Middle East could create a stagflationary shock, just as it did 50 years ago, when disruption to global ​energy supplies sent inflation surging and battered growth

"The risk of a 1970s scenario is rising," said Kaspar Hense, portfolio manager at RBC BlueBay Asset Management.

"If there is another extended war, with oil prices going up significantly further, then the safe-haven status of government bonds are at risk, and with that, all assets."

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