Increasing inflation is making financial markets jittery, fuelled by fears of a tightening in monetary policy and rising 1/2  BIS central bankers' speeches  inflation. And that is precisely what we have been seeing on the stock markets in the past few weeks: sentiment is less exuberant, as inflation is again back on investors’ radar.
I also still expect that the inflation shock we are currently witnessing is largely temporary. Nonetheless, from the perspective of healthy risk management, it is also important to take other scenarios into consideration. Also because the 1970s taught us that we do not have an unlimited capacity for envisaging how temporary inflation is.