Interview with Burkhard Varnholt: Elevated inflation is most likely temporary
The last twelve months have left their mark on the global economy: Various bottlenecks have resulted in increased prices and inflation. Despite this fact, stock market prices are climbing upwards. But how long can the bull markets last? Find out more in this interview with Burkhard Varnholt.
Temporary inflation due to economic bottlenecks
Inflation has recently been a major subject for the markets: The elevated volatility seen a few weeks ago led to jitters, which have settled somewhat in the time since. "Discussions around inflation come and go," says Burkhard Varnholt. The CIO of Swiss Universal Bank and Deputy Global CIO of Credit Suisse anticipates temporary inflation. He attributes the price increases seen in recent months to various bottlenecks, such as those for semiconductors, the number of shipping containers, and petroleum availability. "At first glance, these appear to be sources of inflationary pressure. Firstly, however, this is driven by the statistical baseline effect. Secondly, it is limited to these bottlenecks and thirdly, it will solve itself," Varnholt says. Listen to the interview to find out more about how the inflation pressure will solve itself.
Recession, inflation, euphoria – what's going to trip up the bull market?
Equity markets have recently posted a strong rally. Such price increases are typically ended by a recession, inflation, or euphoria. According to Burkhard Varnholt's estimates, the current bull market will derail any euphoria on the markets. But are we already there? In this interview, find out how the markets are currently developing and what shifts can be expected in the years to come.