Why rising rates leave sharemarkets more vulnerable to bad news
Investors are contemplating the twin threats of high inflation and growing geopolitical tensions as the anaesthesia from low rates is wearing off, argues Citi strategist Rob Buckland.
According to Citi’s chief global equity strategist Rob Buckland, the wild gyrations in the US stockmarket in the past few weeks reflects the stand-off between traders and investors over the impact of rising global interest rates.
“Traders think that it’s bearish that interest rates are going up, but longer-term investors are more bullish because they believe that interest rates are still going to remain low,” Buckland says.
Loading...
Jill Margo was a senior writer at The Australian Financial Review.
