You can see here that cyclical equity sectors perform best when the US 10-year rate starts rising. But what is the impact of a rise in long-term interest rates on the different regions and styles that investors can choose to include in their portfolio?
Many economists and stock market experts are predicting higher long-term interest rates in the next few years. For the moment, we will leave to one side the question of whether this prediction will turn out to be true or not. But supposing it is the case, would you not like to know which sectors will benefit from a potential rise? Our Geert Van Herck explains.
Investors who have an overexposure to US shares in their portfolio have not been complaining in recent years. The US stock market has proved to be the top star performer by some way. Will the party continue? Or are we about to witness a changing of the guard? A brief analysis by Geert Van Herck, Chief Strategist at Keyprivate.