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By Guido BARTHELS, Senior Portfolio Manager, Ethenea Independent Investors
There is no doubt that we are currently in a rising yield environment. The U.S. Fed was the first to start the hiking cycle, but it will not be the last of the major central banks to do so. Although the ECB will follow suit, this is unlikely to be before the summer of 2019. However, if they were to move early, this would be a risk, as it is a step that is largely unanticipated by the markets. The Bank of England will have to deal with whatever type of Brexit actually takes place and we are not likely to see any movement from the Bank of Japan, as they have backed themselves into a corner in terms of monetary policy.
We have also definitely passed the peak of the...
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