A high-inflation economy is bad for most — though not all — companies. During the high-inflation 1970s, US stocks returned 0.1 per cent per year, compared to their long-term average of about eight per cent.  The ones that do better during inflation are the ones that: are low in risk; don’t have to spend much on raw materials; whose products’ purchases can’t be deferred; and (in 2022 at least) that don’t have big energy bills.  Banks tick these boxes. Besides all the above, banks positively benefit from inflation because high inflation results in high interest rates. Interest rates have been…

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