The two nightmares facing investors
Even before the outbreak of war last week, investors were getting rattled. Inflation is here to stay and markets are rightly concerned that 2022 will see the first in a series of US central-bank interest-rate hikes.
How many hikes do the markets fear? It depends on what day you ask them. When the clock struck 12 on New Year’s Eve, the markets were expecting two or three rate hikes in 2022. At the time of writing, they are expecting six or seven.
