As Federal Reserve’s rampant rate increases turn markets cloudy, investors should focus on fundamentals, money managers say
- The outlook for equity investors is cloudy as rising interest rates could tip many economies into recession and hit corporate earnings, State Street CEO says
- With volatility set to play a bigger role in markets, investors should revisit their portfolio to get the right balance between growth and value, Wellington CEO says
The era of high return on investment is over, and the focus should be on value amid looming market uncertainty, according to top money managers, as the Federal Reserve left open the possibility of further rate increases after delivering another steep rate increase.
He said it was possible the rising interest rates could tip many economies into recession and the impact on corporate earnings. “I would just say the outlook for investors is very cloudy.”
Taraporevala was part of the day’s second panel – “Managing through volatile markets” – moderated by Howard Lee, deputy chief executive of the Hong Monetary Authority. The other speakers who took part in the discussion were Wellington Management president and managing partner Stephen Klar and BNY Mellon Investment Management CEO Hanneke Smits.
They said they expect the investment landscape to alter dramatically because of the rising headwinds globally.
