Our hearts go out to all of those affected by the tragic events in the Middle East. By contrast, the investment outlook seems almost peripheral.
So far, there has been little impact on the global economy, and the market reaction has been benign. Can this continue, given the array of risks that investors face?
- Economic growth and sentiment are fragile
- Rising energy costs could reignite inflation and prompt further interest rate rises
- Government debt interest payments are surging
- Defence costs are escalating.
We could see bond yields rise even further. Guy Monson weighs the implications for global portfolios.