The US labor market has slowed sharply and there are signs inflation might be here to stay. Now the country is barreling toward a situation last seen during the economic nightmare of the 1970s: the dreaded "stagflation." ... If we are really headed for stagflation 2.0, it will be bad economic news for years to come.

Are we going to see stagflation?

“We're seeing an adjustment to new temporary realities on the supply side but we're not seeing the stagflation process that we saw in the 1970s recurring again.” Stagflation refers to a situation first identified in the 1970s in which inflation is high, economic growth slows and unemployment remains consistently high.

What assets do well during stagflation?

So if you're looking for a reshuffle of any kind, real estate investment trusts and technology stocks tend to perform well during periods of stagflation, as they are both sectors noted for long-term investment power.