A backdrop of economies reopening at a time when they are awash with stimulus has inevitably sparked concerns that inflation will rise. As economies have opened up, inflation has looked significantly higher than during 2020, when lockdowns stalled demand.

However, what remains less certain, and has become the primary debate among investors, is whether this spike will prove transitory or become more permanent, amounting in effect to a regime change.

A more inflationary environment over the medium term is likely to have profound implications in terms of how different asset classes behave and are correlated, and this will have repercussions for the way investment strategies are constructed.

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.