According to Barron’s citing of Oxford Economics report, the U.S. is experiencing a rare phenomenon showing still strong, but cooling, demand that is being challenged by constrained, but accelerating, supply leading to some kind (transitory or sticking) inflation. These dynamics aren’t purely a reflection of supply constraints; nor are they only an indication of strong demand. Rather, they’re a combination of both creating quite a disruptive inflation pattern.

In the debate about whether inflation is transitory or runaway, the truth likely lies somewhere in the middle: Inflation is likely to be sticky but not permanent, the article is arguing. But with successive shocks destabilizing global supply chains and labor supply still tight, many worry about a 70s-style burst of stagflation, fearing that we’re headed for an economy with rampant inflation and feeble activity.

In this regard, Goldman Sachs strategists offered a revisiting the bumpy 1970s in an attempt to create a portfolio strategy effective in case of stagflation. The report said the U.S. economy was in a state of stagflation from Q1 1974 to Q4 1982. In the U.S., the inflation-adjusted return was 0%, though U.K. equities delivered an 8% return (in part because U.K. stocks started to fall in 1973). Gold was by far the best asset to own, and equities outperformed bonds.