Europe’s biggest asset manager warns high inflation could stick around despite higher interest rates — and lays out the 3 key ways to adapt your investment portfolio to counter it

• The stock market’s direction over the coming months will be tightly linked to inflation read-outs.
• A $2 trillion asset manager has laid out three reasons inflation could persist at high levels.
• The firm also shared three portfolio changes investors should make to ride out the price spike.

The stock market’s direction over the coming months will be tightly linked to inflation read-outs in the US.

If the numbers come down over the summer, the Federal Reserve could ease back from its rate-rise cycle and the sentiment among big investors would improve substantially.

Should the inflation figure stay close to the current level in excess of 8% in the US and even higher in other parts of the world, rate rises will keep coming and a stock market recovery will be unlikely.