In a world that is clamoring for extreme binary views, I do appreciate some moderate views on how things might work out if things do not be too extreme.
We have an idea that interest rates will rise but how would that affect the investment landscape?
The immediate thoughts is that interest rate rise will be bad for existing bond holders, bond fund holders, those holders of sensitive interest sensitive instruments like real estate investment trusts (REITs), telecoms and infrastructure investments.
Frank Gelber, the chief economist at BIS Oxford Economics offers some of his views, also noting perhaps you should not ditch all your interest sensitive investments but perhaps to rebalance them.
The article, Where income growth is soft, yields will stabilise, then soften, is behind a paywall so I will lift parts of it.
He first explains the link between what drives interest rate …