The key points are:
Inflation and talk of higher interest rates have replaced the credit crunch as the main concern for investors.
Food and energy are the main drivers of higher inflation, although the drivers are broader in parts of the Asia-Pacific region.
We think that inflation will decline as growth slows and oil prices fall in the next six months.
However, inflation/stagflation worries over the next few months will add to the volatile ride for financial assets.
Read the full investment insight report from AMP Capital Investors