The Buy Side Brief: Risks for equity investors and how this is impacting portfolios

The Buy Side Brief: Risks for equity investors and how this is impacting portfolios. In our latest Buy Side Brief we have asked seven fund managers about the significant risks they perceive in the market right now. There are two common threads which are closely tied together - both have been widely discussed on Livewire and in the press. 1) The unwinding of ZIRP in the US. Whilst a move in interest rates has been telegraphed for a long time it seems investors are cautious not to underestimate the potential volatility this may cause. 2) An unwinding of the yield trade (as a result of point 1) is the other consistent theme. The trade is likely to remain supported so long as relative returns remains attractive. However, when rates do start moving upwards investors are anticipating significant moves in interest rate sensitive stocks. The full responses from the individual fund managers can be found here: (VIEW LINK)