‘What if inflation hasn’t peaked?’ Barclays’ head of US equity strategy lays out how much further the market could fall – and reveals the stocks investors should buy to counter the risk of stagflation

• The risk of a 70s-like stagflation scenario is real, according to Barclays’ top equities strategist.
• He believes that growth will slow but it doesn’t have to end up in a deep recession.
• The strategist lays out the parts of the market investors should target in this difficult environment. 

With inflation still running way too hot and the Federal Reserve hiking by 75 points again yesterday, the picture remains very complex for investors.

In an interview with Insider, Barclays’ head of US equity strategy Maneesh Deshpande said he expects the Fed will hike to around 3.25-3.5%, potentially by the end of 2022 – and that inflation will come down to 2-3% by the end of next year.

The strategist believes that growth will no doubt slow down, but it doesn’t have to end up in a full-blown recession.