Investec: Expect equity markets to peak 18 - 24 months after first rate rise

Investec: Expect equity markets to peak 18 - 24 months after first rate rise. The end of QE3 in the US has thrust the prospect of rising interest rates under even closer scrutiny for investors. Christine Baalham, portfolio manager at Investec Asset Management says while markets tend to get nervous leading into the first rate rises the actually impact on equities tends to be limited. Baalhm says, typically, equity markets tend to continue rising and peak about 18 to 24 months after the first rate rise. That is certainly what we expect to happen in this cycle. Demand for yield will continue to grow even as interest rates normalise, buoyed by a structural shift in the -demographics of the Western world that creates an ageing investor base needing income in retirement, she said. Full article in the AFR (paywall): (VIEW LINK)


Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.