Risk of too quick a global rebound

WHILE the global economy appears to be recovering, one tail risk that HSBC multi-asset fund manager Denis Gould is concerned with is what happens if global growth becomes too strong.

In such an environment, interest rate hikes will take place earlier than expected as governments move to prevent prices from spiralling out of control. Financial markets are likely to experience a repeat of what happened last May and June, after then-Fed chairman Ben Bernanke said the US will soon slow down its bond purchases.

"Everything was hit. Everything fell, (equities), government bonds, corporat…