Turning the corner: Impact of interest rate cycle

Strategy getting painful

As the interest rate cycle approaches a turning point, Mike Willans and Bimal Patel of Canada Life Asset Management consider the potential impact on markets and the options available to central banks.

The US is well through the interest rate cycle. The ‘hike ‘til it hurts' strategy is getting painful. The 60/40 portfolio has already felt a world of pain, as have private equity, property and pretty much everything that is priced off interest rates. Cash is once again an asset class that people can take seriously; well, if you are willing to accept inflation eroding the value of your cash. IMF: 2023 will be tougher than 2022 for the world's economies Markets are facing a turning point, one for which we at Canada Life Asset Management have been preparing for some time. Intere...