Investment Challenges in a Low Rate Environment
On June 23, 2016, Todd Mattina, Chief Economist and Strategist on the Mackenzie Asset Allocation Team, appeared on Bloomberg TV to discuss where investors may find opportunities in stretched bond and equity markets.
- Stretched valuations of many global stock markets and sovereign bonds suggest low interest rates and expected returns over the next decade.
- The tailwind of credit-driven economic growth is behind us. Reducing high debt, including in emerging markets where debt has risen rapidly, may slow future economic growth.
- Monetary excesses can lead to distortions. The Fed risks falling behind the curve in terms of raising interest rates based on strengthening inflation and employment.