Investing in a time of stagflation

Rising inflation has prompted concerns that the UK economy is seeing the return of stagflation.

Last seen in the 1970s, stagflation is characterised by stagnant growth and high inflation. The supply chain disruptions which led to fuel shortages in September and the looming rising cost of energy saw many draw parallels with the that era.

Indeed, the Bank of England's new chief economist, Huw Pill, is predicting inflation is likely to hit, or even exceed 5% next year.

This week David Thorpe, special projects editor at FTAdviser, is joined by Alan Higgins, UK chief investment officer at Coutts, Baillie Gifford's James Dow, who jointly runs the £987m Scottish American investment trust, and Fahad Kamal, chief investment officer at Kleinwort Hambros, to discuss what the prospects for stagflation are and what investors should do about it.

They discuss how stagflation changes the calculation for income investors, whether there are particular markets which become more attractive in a stagflationary world, and whether this all makes higher interest rates more or less likely.

The FTAdviser Podcast is the weekly podcast for financial advisers, brought to you by FTAdviser. Each week, FTAdviser is joined by guests from the industry to discuss the week in news and pressing industry issues.

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