J P Morgan’s Chief Strategist Hugh Gimber looks at past rate hiking cycles, and concludes that it could be anything from 8-15 months, but during this time where to invest?
Cash looks attractive with higher interest on savings than has been seen for 20 years, but cash isn’t keeping pace with inflation, locking in losses in real terms.
Following last year’s torrid times in the bond markets could fixed income be the best performing asset class for the next 3-5 years? History shows that at the end of tightening cycles bonds can deliver more consistent positive performance than equities.
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