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Three Musketeers of Chaos - Inflation , Covid & Elections

If you think the last eighteen months were volatile then the next eighteen months will surprise everyone with the level of volatility in the real and financial world.

This has already begun since this month, if you have been following key headlines around the globe there are three major concerns with inflation being at the top and then Covid resurgence especially in Europe along with lockdown being reimposed in some countries. The third is specific to some countries like elections in France, USA, and India.

In all this, the chaos is being provided more fuel with geopolitical tensions with USA-Iran, USA-China, and USA-Russia. The only wall restricting these elements shaking the financial markets were the central banks that have made inflation reduction the top priority and thus tapering asset purchases.

The problem that we face in this period is unique in its way but there are only a few ways where damage will be lowered than thought. But as elections and covid become focal points of government and inflation of central banks there are many ways the chaos will get out of control before a remedy in way of more QE is brought in to calm the financial markets. This according to me can stretch till March 2022 and applying remedial actions the damages can be contained.

This festival and flu season is first with a vaccine availability that brings more savings drawdown and a higher mutation post-December mid when festivals peak and winter arrives in great form.


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