Rate rises will crush all asset prices
This month's sell-off is a timely reminder that fixed-rate bonds can be a horrific hedge to losses in shares when the economy is firming.
Christopher Joye is a contributing editor to The Australian Financial Review. He is a leading economist, fund manager and policy adviser who has previously worked for Goldman Sachs and the RBA, and was a director of the Menzies Research Centre. He is currently a director of Smarter Money Investments.
This month's sell-off is a timely reminder that fixed-rate bonds can be a horrific hedge to losses in shares when the economy is firming.
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