The investments to buy when markets start to crack

Rising inflation has central bankers between a rock and a hard place. Here’s how to protect your wealth, says Philip Pilkington.

Container ships at dock
These queues don’t bode well for prices
(Image credit: © Getty Images)

The debate over whether inflation is transient or not is coming to an end. Most economists and central bankers have woken up to the fact that it may stick around for longer than they first thought. Price rises and shortages now seem to be building on themselves. Even The Daily Star recently highlighted arbitrage in the eBay market for Walkers crisps under the headline “Crisps Crisis”. Central banks are bracing themselves accordingly.

A few months ago, the inflation debate was all about whether inflation was “transient” and due to short-term price increases driven by economic reopening; or structural and caused by deep economic disruptions caused by government responses to the pandemic. I had thought it was the former, but by September, I had changed my mind. Since then even more evidence has emerged to back the “structural” case.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Philip Pilkington is a macroeconomist and investment professional. He is the author of the book The Reformation in Economics, and blogs at Fixing the Economists and on Twitter @philippilk