What are the global trends that are now playing out?
- Strong developed market growth is producing inflation.
- Requiring Central Banks to tighten monetary policy, leading to a rise in interest rates from ultra-cheap levels, and consequently causing market volatility.
- Couple this to the Trump trade wars, and the uncertainty, add to the market volatility.
How does this impact on equity markets?
- The increase in interest rates will drive equity risk premiums up, so we could expect to see equity markets either correct or move sideways.
Ok, so if we expect market volatility to remain high, and for there to be potential corrections, what is our view in terms of the local and global markets and assets classes?
We have prepared a short video addressing this question.
For the full video discussion please visit the link below:
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