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Charts That Matter

On Capitulation And Good Versus Bad Disinflation

by Arthur Budaghyan, Chief EM/China Strategist  

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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