Global markets have corrected since September 2021 and growth stocks, except in China, have outperformed cyclical stocks on worries of economic slowdowns from the more transmissible Delta variant. Renewed disruptions from the Delta variant of Covid-19 and China’s regulatory clampdown have led to slower economic growth. With inflation looking to stay higher for longer, stagflation fears have surfaced. A reopening after adequate vaccination would likely boost economic growth accompanied by a reflation rally.
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