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John Abernethy

The asset prices tipped to grow in the coming year

Rising bond yields mean that the risk-free rate of return will lift and be a headwind for the pricing of all assets in the coming few years.

Asset markets have emerged from a decade of rampant bond yield manipulation by central banks – quantitative easing – that was extended by a COVID-19 crisis.

In the main, central banks effectively printed money, targeted a particular bond yield/s in markets and then intervened by secondary market purchases to attain that yield.

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John Abernethy is a director of Clime Asset Management.

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    Original URL: https://www.afr.com/wealth/personal-finance/six-insights-to-help-investors-reset-for-the-coming-year-20230826-p5dznp