We believe that the advent of negative real interest rates in the US is one of the most important forces in financial markets today. It has broad ranging implications for investment portfolios, specifically reducing the relevance of government bonds that no longer generate a real return while positively supporting equities, real assets and gold.
Achieving portfolio return and income outcomes in a negative real interest rate environment means re-evaluating asset allocation strategies. Quite simply, portfolios need to adapt.
We are closely monitoring the impact of rates and how they impact your portfolios, and our Chief Investment Officer, Alex Pikoulas, has recently been interviewed by both Ausbiz and Livewire on this topic.
Click on the image below to watch the Ausbiz Interview (6mins 27secs)