According to the US investment bank, investors must target the shares of dividend companies... because unpredictable inflation is forthcoming.
And it is very possible that the new Fed leader will resort to four interest rises this year and much more in the next year.
The bank does not recommend investors to close their long positions, but warn them to be extremely careful.
Here are some suggestions of the bank's letter to its clients:
There is inflationary pressure on wage growth for Americans, with average hourly wages rising by 3% on an annual basis.
The gradual rise in expectations for interest rates hikes by the Fed, which can still be defined as not very aggressive, given the dangers of rising inflation.
The bank expects a price increase for Brent to $82.50 a barrel, by the middle of the year.
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