Vantage Point: Portfolio Construction  

Investors facing a “nasty cocktail” as stagflation looms

Lothar Mentel, chief investment officer at Tatton, says the present economic conditions mean the US may have better economic prospects than Britain, but higher bond yields, which are worse for equities, while Britain may have worse economic prospects but lower bond yields as a result.

He says that while each of those scenarios presents challenges for investors, he does not view the coming market events as an emergency. 

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David.Thorpe@ft.com