02. Can optimism rise from the inflationary ashes?

South African inflation just hit its highest peak since 2009, as it accelerated to 7.4% in June, in line with the global trend. Over in the US, inflation reached a four-decade high of 9.1% last month. As households around the world grapple with rising food and fuel costs, central banks are faced with the difficult task of hiking interest rates to rein in inflation. Allan Gray portfolio manager Sandy McGregor started his career in the 1970s when, much like today, the world was facing rampant global inflation and an energy crisis. In conversation with Allan Gray portfolio manager Thalia Petousis, Sandy reflects on the very real geopolitical and economic challenges currently affecting the world. Taking us through a range of scenarios, he shares some important lessons from the past and looks to the future, reminding long-term investors that periods of strife often present opportunities.