Investment: Rising debt, higher interest rates? How investors can react
The investment universe has changed radically with the end of the low-interest-rate world. Three experts explain how investors can adjust their portfolios and why a classic is poised for a comeback.
The era of low interest rates is over, with bond yields in the Eurozone above 3% and in the US above 5%. Experts warn that interest rates may continue to rise due to increased government debt. This shift makes interest-bearing investments, such as bonds, a more viable alternative to stocks, with financial experts recommending a 60/40 portfolio split. Investment firms, such as Metzler, are adjusting their portfolios to include more bonds with high credit ratings and shorter maturities.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
