There are very few places for investors to hide in a market in which both property values and equity prices are volatile. The question, a perennial one, is which asset class has the potential to generate the greatest return while rising interest rates are still on central banks’ agendas.
Soaring interest rates are to asset prices what gravity is to the apple: they bring everything down, says Contrarian Group independent financial adviser Damian Liddell.
“It’s a pretty lousy time for investors, really. I’d be treading very carefully right now if I was looking to invest in either shares or property. Both are highly correlated to interest rates. I don’t think asset prices are going to go up any time soon. If anything, they are going down,” he says.
Read more in the Australian Financial Review: