- For the first time in some years, inflation is a looming concern for investors. - This is being felt in asset pricing, with longer-dated bonds rising higher and more economically sensitive stocks leading markets higher. - An inflationary shock looks unlikely, but investors should still be alert to shifting inflation expectations. Investors have been preoccupied with the impact of the pandemic, but as the economic impact has lessened and recovery builds momentum, they have started to find new concerns. At the top of the list today is inflation. Could the confluence of economic recovery with vast economic stimuli cause a shock?