Longer-dated bonds have appeal amid overblown rate hike views, says Allan Gray

Fixed income portfolio manager Thalia Petousis backs Reserve Bank to be less aggressive in tightening borrowing costs

With the JSE trading at near-record levels even amid ongoing global concerns about everything from possible stock market bubbles, accelerating inflation and geopolitical tensions between the US and China, armchair investors might be tempted to take some risk off the table by switching their portfolios into the comparative safety of the money market.

However, after speaking to Allan Gray fixed income portfolio manager Thalia Petousis they might want to instead consider longer-dated government bonds as a safe haven or even continue chancing their luck in equities. Despite the market pricing in rate hikes at every monetary policy meeting between now and the end of 2023, Petousis says the hawkish rate sentiment is overblown as the Reserve Bank may turn out to be less aggressive in tightening borrowing costs...

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

BDliveSA /  🏆 12. in ZA

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Gains in US jobs beat October’s estimatesThe unemployment rate fell to 4.6% while the labour force participation rate was unchanged
Read more »

Petrol, power price hikes hit South Africa hard - The Mail & GuardianPetrol, power price hikes hit South Africa hard - Households are reeling after the fuel price hike, as electricity is set to go up by 15.06% in 2022
Read more »

Covid-19 update: 358 new cases, 24 more deathsSouth Africa's current Covid-19 positivity rate is around 1.2%
Read more »

HSBC requests Hong Kong staff get vaccinatedCity authorities issue a new circular to push for higher Covid inoculation rates
Read more »

PODCAST | Record high petrol prices and SA’s economyThe latest fuel price hikes are the focus in of this edition of the Business Day Spotlight.
Read more »

Stage 4 load-shedding returns as diesel runs out - The Mail & GuardianStage 4 load-shedding returns as diesel runs out: Eskom said it would scale back to stage 2 outages from early Saturday for the rest of the weekend but was no longer able to compensate by burning open-cycle gas turbines
Read more »