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Investment Trust Insider : look out for credit quality not rising rates

Investment Trust Insider on Capital Gearing Trust

Investment Trust Insider : look out for credit quality not rising rates

James Carthew, head of investment company research at QuotedData and Investment Trust Insider columnist wrote the following article:

Investment Trust Insider : look out for credit quality not rising rates

Markets move in cycles and, for a long time now, we have been in an upcycle. We know that the party cannot go on for ever, much as we would like it to, the question is how does it end?

I have previously referred to Seneca Global Income & Growth (SIGT) and its manager’s belief that we are due for a recession in 2020 or thereabouts. Given that markets try to anticipate such things, this would translate into a bear market in 2019. The heightened volatility that we are seeing at the moment could herald this.

Easy-money policies introduced in the wake of the financial crisis are being unwound. At the forefront of this has been the steadily rising US Federal Reserve funds rate. The timing of the interest rate hikes does not suit …

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Investment Trust Insider : look out for credit quality not rising rates

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