Question: b) Another Bloomberg (9 May 2022) article reports Cash is the only winner in a market gripped by stagflation fear ... we're holding our

b) Another Bloomberg (9 May 2022) article reports "Cash is the only winner in a market gripped by stagflation fear ... we're holding our cash with both hands", said BlackRock, an investment company.

(Stagflation is defined as persistent high inflation combined with high unemployment and stagnant demand in a country's economy.)

Required

b)Explain reasons for investors holding cash if inflation is expected to be high. (2 marks)

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