What are the emerging financial trends as the world exits the pandemic?

• Published date: 13 October 2021
• Author: ZACHARY KEYSER
• Publication title: Jerusalem Post, The: Web Edition Articles (Israel)

"We're at a very interesting point in regard to the macro-economic environment," said Peleg. "For the last ten years, even more, we have been living in an environment of zero inflation, zero interest rates."

Peleg noted that if you go back to the 1990s, inflation was barely above 3%, but now looking towards the US or Europe, inflation rates are now running at around 4-5%.

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"This is a big change, I think," he said.

He went on to address the argument surrounding the notion that if inflation is now transitory, or if it is permanent, to which Peleg commented that it could be a little of both.

"We might not stay at these elevated levels, but still there is, I think, a good chance for higher inflation levels that we have been at for the last 10-20 years."

He noted that some of that has to do with the demand being "quite strong" at this point in time, with governments spending trillions to support economies across the world amid the coronavirus pandemic, the labor market evolving alongside changes in work structure as well as the way companies are valuing their supply chain management within these changes.

And while these inflation rates have already skyrocketed, as demand has increased globally, interest rates are expected to increase further than it has in the past two decades.

Cash has already begun losing value, and at 4-5% interest rates, people will have to start rethinking how they manage their financial portfolio.

Within today's digital landscape, and the popularity of cryptocurrency on the rise, central banks are...