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Sonali Basak highlights that, despite the fluctuations caused by shifting geopolitical tensions, many investors are examining bond and oil price movements in the context of inflation.
She notes that equities have historically posted strong nominal returns during periods of moderate inflation.
Basak has previously examined market headwinds in other sectors. She discussed challenges around AI investment, citing uncertainty with valuations and business models. In a separate report, she noted that hyperscaler spreads over Treasuries have widened, making borrowing costs more expensive for investment grade companies.