Fidelity International believes that structural inflation, fueled by government deficits, AI investments, low unemployment rates, growing trade barriers and energy disruptions, is reshaping the market landscape. The firm notes that central banks may have declared a premature victory in their battle against inflation, with developed markets now suffering their sixth consecutive year of above-target inflation. Fidelity recommends investors turn to stocks and inflation-linked profit streams, highlighting particularly Japanese banks whose profitability has significantly improved. The firm also favors gold as a store of value, along with metals and mining companies critical to structural trends such as electrification.
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