When rising interest rates bite
- Shunil Roy-Chaudhuri
- 25 April 2023
- 5 mins reading time
In this video Johanna Kyrklund, Chief Investment Officer at Schroder Investment Management, compares recent market and banking turbulence with previous periods of uncertainty, such as the Global Financial Crisis and bursting of the dotcom bubble. She highlights how rising interest rates can spell trouble for economies and markets, by exposing investor speculation. And she points out that this can lead to lower market valuations and slower economic activity overall. Johanna also points out that her multi-asset team currently favours government bonds and higher quality corporate bonds, as they expect the US economy to slow and move into recession later this year. And she adds that her team remains cautious on equities, even though share valuations have fallen.
Schroder Investment Management (SIM) provides investment management and advice services for Schroders Personal Wealth (SPW) funds and portfolios respectively.
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The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors might not get back their initial investment.
There is no guarantee by investing money it will keep level or beat inflation, particularly when inflation is high.
Cash savings and investments are protected to the value of £85,000 per person per institution by the Financial Services Compensation Scheme (FSCS).
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