Buy the dip despite inflation fears, Barclays says
With inflation fears persisting and the economic cycle maturing, Barclays sees a period of higher volatility and lower returns for European stock markets.
However, analysts at the British lender still find equities more attractive than bonds, and has recommended that investors should look to buy the dip.
Global stocks have been rattled over the past month by concerns that higher inflation could be persistent, which have driven bond yields to multi-month highs.
Yet Barclays retains a positive outlook for equities, arguing that the TINA (there is no alternative) principle still prevails, with fund inflows having slowed lately. With price-to-earnings ratios having compressed, the bank expects future returns to be lower, but still positive.
Reference: CNBC
Read More: https://www.cnbc.com/2021/10/
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