The Relationship between rising bond yields and equity prices...
Niv Dagan
Peak Asset Management
Good Morning, Trust that you had a nice weekend and are raring to go for another busy week… Can you believe that June is only a few days away? This year has certainly “blinked past”……… There has been a lot of talk of late over rising bond yields … What are bonds? They are effectively debt … so when yields are rising, borrowing costs “should” rise… Even though global interest rates are at record lows, bond yields are rising, suggesting that interest rates in AUS, USA, Europe & Asia are “expected” to go up.... Should this be a bad things? Well …. No….. According to history, rising bond yields suggest higher inflation and higher growth, which are positive correlated with equity prices… So even though the market expects that interest rates will rise… it is actually, positive for equity prices… interesting... The SPI is down 9 points
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Prior to founding PEAK Asset Management, Niv headed up HC Securities, spent three years growing Halifax Investments capital markets division and also worked on the wholesale desk at Macquarie Bank, servicing a wide range of institutional, intermediary and offshore hedge funds. Niv takes an active approach in managing client funds and is a firm believer that adequate risk management is paramount in any good investment decision. Niv's work is largely focused on portfolio management, asset allocation, fixed income, managed funds, structured products and developing tailored strategies for the SMSF sector.
3 topics
Niv Dagan
Executive Director
Peak Asset Management
Prior to founding PEAK Asset Management, Niv headed up HC Securities, spent three years growing Halifax Investments capital markets division and also worked on the wholesale desk at Macquarie Bank, servicing a wide range of institutional,...
Expertise
No areas of expertise
Niv Dagan
Executive Director
Peak Asset Management
Prior to founding PEAK Asset Management, Niv headed up HC Securities, spent three years growing Halifax Investments capital markets division and also worked on the wholesale desk at Macquarie Bank, servicing a wide range of institutional,...
Expertise
No areas of expertise
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