After the US election, investors’ outlook on interest rates is shifting, with many now believing the downward path of US inflation is less certain and therefore Fed rate cuts may be slower to come than before. At the same time, the European macroeconomic outlook has clouded over, with the biggest eurozone member Germany engulfed in a political crisis on the backdrop of a weakening domestic economy. US tariffs may add more bad news for Europe and China, which rely to a significant extent on exporting to the world’s largest economy.
Times like these serve to remind market participants that it is crucial to ensure they hold diversified portfolios, while taking a long-term approach to investments. High yield floating rate products could be an attractive option for investors seeking to insulate their portfolios from future interest rate volatility, focusing on high yield spread and carry as the main drivers of return.
Please join us for a webcast on Tuesday 3 December with Fund Managers James Tomlins, Lu Yu and Stefan Isaacs. They will provide an update on markets and discuss how active management and a flexible approach can help investors navigate market moves following major political and geopolitical changes.
We hope you can join us.