Wealth managers have been adapting the investment strategies of their clients’ portfolios against a conflicting background of easing monetary policy and rising geopolitical tensions in the past few months.
After a period in which central banks had to raise interest rates to combat stubbornly high inflation as war in Ukraine raised food and energy prices, rates have now plateaued or started to fall — even though conflict in the Middle East has intensified. “We find ourselves in interesting times, where some risks are actively receding but others are insidiously creeping up,” says Tom Sparke a portfolio manager at Progeny Asset Management.
