Investors may be 'woefully unprepared' for inflation

Federal Reserve building.
(Image credit: DANIEL SLIM/AFP via Getty Images)

Investors are "woefully unprepared" for inflation, The Wall Street Journal's James Mackintosh wrote Wednesday.

Mackintosh acknowledges that historic financial turning points "have proven remarkably hard to spot" — there was concern about sustained inflation in the aftermath of the Great Recession, as well, for instance — but "the evidence for a generational shift is strong across five fronts." Central banks are less concerned about inflation, governments are more willing to spend, globalization has peaked, birth rates are declining, and labor rights are strengthening, all of which should combine to drive up wages and prices, Mackintosh writes.

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Tim O'Donnell

Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.