Chanticleer
Why this rate rise will rattle corporate Australia and investors
Plunging consumer stocks are the canary in the coalmine for the corporate sector and Tuesday’s surprise rate rise will expand the pockets of pain investors are seeing.
Matt Haupt, portfolio manager at Wilson Asset Management’s large cap-focused listed investment company WAM Leaders, neatly summed up the feeling of many investors after the Reserve Bank’s surprise interest rate rise sent the ASX 200 down 1.2 per cent.
“I think this is shock number five over the 12 hikes we’ve seen since last year,” he said. “Their signalling is hopeless at the moment and the market wasn’t positioned for it.”
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