At the beginning of the year, many advocated for the holding of bonds over equities due to interest rate predictions. During this short period, stocks have opened up a +10% gap from bonds.

Higher interest rates means a higher cost of borrowing for both you and companies, but it also means better opportunities to grow your savings through instruments like T-bills and our Capital Holding account

Many investors worry that the present market environment of rising interest rates will decrease equity valuations and therefore lead to relatively poor equity market performance over the next year or more. From a theoretical perspective, how do these rate hikes affect the market?

The last time tapering occurred in 2013, markets wobbled for a while, and bonds - the most badly affected of all asset classes - suffered a significant loss over a short period of time. The event was then dubbed the “Taper Tantrum”. With a fresh round of tapering looming on the horizon, how worried should we be of our investments?