Capital Group | Rising yields put bond markets back on a road to normal

Rising inflation and slowing global growth are two dominant themes casting a pall over the current market environment. With increasing geopolitical uncertainty, tightening monetary policy, supply chain challenges and higher commodity prices at play, a period of global stagflation could potentially be on the horizon.

Navigating the foggy road to normal has never been more challenging, but with a long-term lens one can better understand the strong normalising effect that disinflationary forces such as rising debt levels, technological advancements and aging demographics could have. Having a clear understanding of these can help investors better find their way.

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