Fears of high inflation worry big investors

RIYADH: Fears of high inflation in the coming period have become a cause of concern for leading investors, especially institutions. The urgency for hedging is also increasing for portfolio managers in order to face any upcoming crises through an increase in the acquisition of goods and stocks, as well as short-term treasury bonds, according to Al Arabiya.

High inflation is expected based on increased government spending, substantial stimulus packages and the liquidity pumped by central banks to combat the impact of the pandemic, amounting to $6.6 trillion since last March.