Capital Markets Outlook Fall 4Q13
Perspectives in a Rising-Rate Environment
October 16, 2013
We expect moderate global economic growth with greater balance between developed and emerging economies. Technical factors and anxiety over rising rates are creating volatility in capital markets. In our view, rates will rise, but gradually over several years. There are a lot of strategies that may make bond portfolios less sensitive to US rates, and stocks have historically fared well in rising-rate environments. We see many opportunities for active management to add value in stocks and bonds.