Almost all benchmark stock indexes and theme indexes are weakening.CrashtagteamracingpcdownloadIn the past month, stagflation-themed trading is springing up.
Those in the US and European markets are more vulnerable to the risk of inflationCrashtagteamracingpcdownloadStocks in sectors such as consumer goods and real estate have come under pressure, dragging the s & p 500 down more than 4% so far in April. At the same time, higher oil prices boosted energy stocks.
Although the US economy has performed strongly in the past few months, forecasts show that GDP growth will slow from the second half of this year.
An index of Goldman Sachs, which measures the performance of long stagflation stocks while shorting stagflation stocks, has risen nearly 5% since early April and is set to record its biggest monthly gain in a year.
The top 10 long stocks in the Goldman Sachs index include Microsoft, MasterCard and Caterpillar, while short positions include Abercrombie & Fitch Co., Super Micro Computer Inc. And KLA Corp.
Given that the road to 2 per cent inflation in the US has proved more bumpy than expected, prompting investors to withdraw expectations of interest rate cuts, the focus will eventually turn to the impact of economic growth prospects.