Prepare for a turn in the interest rate cycle
Bond investors should be mindful of excessive duration exposure within their portfolios
FOR much of the past year, markets were looking forward to global rate cuts, supported by resilient growth and gradually easing inflation.
At the time, rate cuts were generally not in question. The debate instead centred on the timing and magnitude of rate cuts.
The Middle East conflict has fundamentally altered this narrative. Energy prices have surged, and the impact is already evident in global inflation data.
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