Back to the 1970s? Investors brace for a return of stagflation

Investors are now seriously considering the possibility that war in the Middle East could create a stagflationary shock, just as it did 50 years ago, when disruption to global energy supplies sent inflation surging, and battered growth. "The risk of a 1970s scenario is rising," said Kaspar Hense, at RBC BlueBay Asset Management. "If there is another extended war...