Investors are reassessing their concerns over interest rates, but a new threat is emerging. According to Phil Camporeale, a portfolio manager at J.P. Morgan Asset Management, the biggest risk is that inflation will pick up again in the second half of the year.
Camporeale warns that “inflation not just being sticky, but picking up” could lead to wage growth and price acceleration in sectors like lodging and restaurants. This would pose significant challenges for investors.
Despite concerns over interest rates easing, Camporeale believes that inflation is a more pressing issue. The second half of the year is crucial, as investors will need to monitor the situation closely to make informed decisions. As Camporeale notes, “the biggest risk is that the inflation story kind of rears its ugly head again.”
Source: https://www.marketwatch.com/story/stock-investors-stopped-freaking-out-over-interest-rates-now-theyre-eying-this-risk-4372a835