- Stagflation is when economic growth is lagging but inflation and unemployment are increasing.
- Supply-side shocks can lead to stagflation and leave central banks with little room to maneuver besides hiking interest rates and talking tough.
- Crypto remains firmly in risk-on asset territory and could suffer more if stagflation materializes.
- Bitcoin looks cheap by a number of metrics but a reversal depends on where the Fed will take the economy.
- Almost all asset classes are going sideways or down during stagflation. Commodities are the exception, but investing in them is hard to get right for retail investors.