Investors Seek Refuge: Dollar Faces Double Threat from Stagflation Risks

Concerns about U.S. stagflation are fueling portfolio adjustments, as investors seek to mitigate the potential economic and financial damage from rising inflation and slow growth. A recent BofA Global Research poll indicates that nearly 70% of global investors anticipate a combination of below-trend economic expansion and above-trend inflation in the coming year. This expectation is bolstered by signs of weakening U.S. labor market conditions, surging core inflation, and unexpected increases in producer prices.