In Focus

In Focus: markets as we see them

 

Last updated: 24 March 2017

Inside this week:

  • Lift-off: This week, we’ll look at history to glean a better understanding of how different asset classes have  historically reacted in a rising rate environment
  • Equities: Most of the time, rising growth expectations have tended to dominate the negative effect of higher discount rates during rate hike cycles
  • REITs: The rising property demand that tends to accompany a stronger economy may better explain REIT returns rather than interest rate cycle 
  • Bonds: Simply knowing that we are in a rate hike cycle doesn't mean that we can outperform our benchmark – we need to correctly forecast the reaction of long-term yields to rate increases as well
  • Investment conclusion: A relatively shallow and unhurried rate rising cycle and a very gradual unwinding of the Federal Reserve’s balance sheet, should be on the cards

Read the full In Focus [PDF, 833KB]

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This document has been prepared by the wealth and investment management division of Barclays Bank Plc ("Barclays"), for information purposes only. Barclays does not guarantee the accuracy or completeness of information which is contained in this document and which is stated to have been obtained from or is based upon trade and statistical services or other third party sources. Any data on past performance, modelling or back-testing contained herein is no indication as to future performance.

No representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of any modelling or back-testing. All opinions and estimates are given as of the date hereof and are subject to change. The value of any investment may fluctuate as a result of market changes. The information in this document is not intended to predict actual results and no assurances are given with respect thereto.

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  • The value of your investments can fall as well as rise and you may get back less than you initially invested.
  • Investing is not for everyone, if you are unsure please seek independent financial advice.

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