Valuations have “never compressed so quickly” on the back of rising rate expectations, according to SG Hiscock, with those sectors which had benefitted from negative yields being hit the hardest.
Investing currently is like “tap dancing on a tightrope”, according to Morgan Stanley, as asset allocators try to navigate volatile markets, rising inflation and the possibility of rising interest rates.
Investors need to be prepared to actively manage rising volatility as markets are facing significant uncertainty as a number of macroeconomic themes collide, according to SG Hiscock & Company.