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On Capitulation And Good Versus Bad Disinflation

by Arthur Budaghyan, Head of CoreMacro  

We recommend that investors use the following framework to think about whether potential disinflation would be bullish or bearish for share prices: disinflation will prove to be bullish for global share prices if it is due to an improvement in supply-side dynamics, but bearish if it is demand driven. We believe it is the latter.

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