Asset Allocation | Portfolio Updates
Asset Allocation Update: Interest Rate Shock Not Ending
- By Bilal Hafeez
- 3 min read
We continue to advocate our ‘everything breaks’ portfolio. The core rationale is that we are entering a new regime of higher interest rates – something investors have not faced for a decade. Constant talk of a ‘Fed pivot’ shouldn’t come as a surprise as investors are not used to high rates. They have been buying equities, property and crypto for the past decade – all of which have benefited from low rates. But the economic reality has changed, inflation is rampant and central banks are likely to end up raising rates more than most expect. The Fed recently said as much.
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