Although the decade is short in terms of history, investors will be in a bad position if US inflation gets out of control and repeats the mistakes of the late 1960s.

In a report released on Tuesday, Deutsche Bank summarized the performance of a range of assets during stagflation in the 1970s.

Although history never repeats itself, Deutsche Bank's strategists are trying to provide clients with a framework for how to think in the coming years if inflation stays high after the Fed-triggered recession.

Deutsche Bank strategists Jim Reid and Henry Allen pointed out in the report:

If inflation persists for a decade, what can be expected for investors in traditional financial assets such as bonds and stocks is "a real destruction of wealth".

Relatively speaking, commodities may be a better choice, or more profitable.

Gold and silver have not made much progress in the past two years, and gold and silver are probably the most prominent cheap assets from the experience of the 1970s.

The "aftermath" of the COVID-19 epidemic and the conflict between Russia and Ukraine have triggered supply chain disruptions and shortages of key products, raising concerns about inflation. 'it 's easy for us to get into this [1970s] stagflation, 'Bob Prince, co-chief investment officer of Bridgewater, the world's largest hedge fund, said in an interview with Bloomberg on Tuesday.

It is worth mentioning that the Fed's favorite indicator of inflation, the core PCE price index, will be released on Friday, and economists generally expect the core price index, which excludes food and energy, to slow to 4.9% year-on-year growth in April from 5.2% the previous year.

In addition, according to a recent survey released by the National Association of Business economists, economists expect inflation to return to the Fed's 2% inflation target after 2024 or later. Still, most economists think inflation will peak this year, and more than 1/3 think it will peak in the first quarter of this year.