Stagflation fears have plagued investors in recent months, as prices start to rise in an economy that hasn’t quite picked up pace yet. But investors can employ a few strategies to trade around these risks, analysts say.
An economy going through stagflation is one that simultaneously experiences stagnant activity and accelerating inflation. This phenomenon was first recognized in the 1970s when an oil shock led to an extended period of higher prices but sharply falling GDP growth.
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