Model portfolio: The changed interest rate environment requires not fewer stocks, but different ones
Money has a price again. Capital market interest rates of over five percent are also changing the stock market. Model portfolio author Gabriele Hartmann explains how she reacts to this.
Global financial markets are experiencing a significant shift as interest rates rise, with the 30-year US Treasury bond yield exceeding 5% for the first time since 2007. This change is impacting stock markets, which have been reaching record highs, and investors are becoming increasingly cautious. The US national debt has surpassed $40 trillion, and concerns about inflation, growing deficits, and the sustainability of high debt levels are driving investors to seek safer assets, such as gold, which has reached a three-month high.
In response to these changes, some investors are adjusting their portfolios to include companies that are less dependent on cheap capital, such as Visa and Axa, and rebalancing their holdings to prioritize more resilient investments.
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.
