Sunday 14 May 2017

Volatility - the best choice in an environment of rising interest rates? (2)

On the other hand, we have to mention the difference in interest rates now and the first such actions last year. This year, the sharpest rise in interest rates over the past ten years is expected, which may have a negative impact on the indices, against the backdrop of a positive reaction, since their first increase in December 2015.
So, what can investors do? In addition to usual suspects - shortening US indexes, gold purchases, they can look even bolder on long-term US government bonds.
And interest rates, especially if their faster growth is expected, are the biggest enemy of government bonds. Or they can continue and even deepen their decline this year.


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