Reflation & Inflation: First Quarter 2021 Investment Commentary

Global stock markets celebrated the one-year anniversary of the pandemic-induced bear market low (from late March 2020) with another strong quarter of returns. The first quarter also saw a continuation of the “reflation rotation” trend that has been happening beneath the market surface over the past several months. And while we believe the most likely scenario over the next year at least is a reflationary one, many investors are wondering if inflation will be a threat anytime soon. Chief Investment Officer Jeremy DeGroot addresses this question and discusses the ways in which broad market trends impacted portfolios.