NewsBite

Opinion

Karen Maley

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.

Karen MaleyColumnist

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

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...
Karen Maley writes on banking and finance, specialising in financial services, private equity and investment banking. Karen is based in Sydney. Connect with Karen on Twitter. Email Karen at karen.maley@afr.com

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Read More

Latest In Financial services

Fetching latest articles

Most Viewed In Companies

    Original URL: https://www.afr.com/companies/financial-services/why-rising-rates-leave-equity-markets-more-vulnerable-to-bad-news-20220204-p59trb