Looking ahead to the second half of the year, we think that the cycle of monetary tightening and economic slowdown will be the key issues in financial markets. The stagflation scenario, in fact, came into focus by mid-June. Since then, the emerging outlook of many analysts focused on recessionary pressures, prompting a meaningful rally for interest rates and a correction in cyclicals, energy and materials-related stocks. However, at Plenisfer we believe that stagflation remains the most likely future scenario.

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