Asset classes traditionally considered as 'safe havens' for investors may be in a uniquely vulnerable position, a top HSBC economist has warned.
Market signals imply that future returns of global government bonds are going to be "negative in inflation-adjusted terms," says HSBC's chief global strategist.Asset classes traditionally considered as "safe havens" for investors may be in a uniquely vulnerable position, a top HSBC economist has warned.
The economic news about continued low inflation has made this promise credible, he explained, but the consequence of this environment has been the driving of global bonds and credits into "very expensive valuation territory." "These signals imply that future returns of global government bonds are going to be negative in inflation-adjusted terms."What this means for investors is that if inflation picks up a little faster than expected, these assets are suddenly at risk, a small surprise that could have a big impact on market pricing.
"This should be a reasonable environment for corporate profits, and it should be an environment that favors risk asset classes too," Little explained.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Fed flags high U.S. business debt, asset prices in financial reportU.S. stock prices are 'elevated' and business debt is at historic leve...
Baca lebih lajut »
CFPB rules would let debt collectors send unlimited texts, with a caveatA U.S. regulator unveiled proposed rules for debt collectors that would restrict how often they can call borrowers, while making clear that firms can send unlimited text messages and emails as long as consumers don’t opt out.
Baca lebih lajut »
China banks temper April lending as debt worries rise, but all eyes on trade threatChinese banks throttled back new lending in April after a record first quarter t...
Baca lebih lajut »
How the student loan 'grace period' can actually make your debt problem worseHow the student loan 'grace period' can actually make your debt problem worse via CNBCMakeIt
Baca lebih lajut »
8th grader inspired by lunch shaming stories vows to pay a district's $18K lunch debtA 14-year-old has pledged to eliminate the sizable lunch debt for a district of 129 schools in Texas state.
Baca lebih lajut »
Fannie and Freddie Back More Mortgages of Those Deeply in DebtThe gatekeepers of the American mortgage market are increasingly backing loans to borrowers who have heavy debt loads, highlighting questions about mortgage risk.
Baca lebih lajut »
Philando Castile's Mother Tackles Minnesota School's Lunch Debt With $8,000 DonationThe mother of police shooting victim Philando Castile recently donated $8,000to a Minnesota high school to erase student lunch debts
Baca lebih lajut »
Debt collectors would be able to text and email about missed payments under proposalThe proposal limits the number of calls debt collectors may place to reach consumers in a week, but the frequency limits for phone calls would not apply to emails or text messages.
Baca lebih lajut »
New Rule to Shift Debt Collection Activities to Digital DevicesConsumers with debts in collection could soon see email and text messages replace phone calls and letters as the main channels of communication from debt collectors.
Baca lebih lajut »