Interesting. We all need to readjust to higher interest rates.
Interest rates are hitting multiyear highs at a time when most portfolio managers have never dealt with this phenomenon before.
Most of them have never operated in a rising rates environment. The median tenure of an active equity manager is eight years, according to Fundstrat, citing figures gathered from Morningstar. The last time rates were in a significant uptrend was from 2003 to 2006 before the financial crisis struck.
"There are a lot of people that haven't been through many things in this youthful industry," said Timothy Parton, a portfolio manager at J.P. Morgan. "The time when rates are rising coincides with a period in the cycle that is tough for any manager. You don't want to be too cautious, but you don't want to be too aggressive too early."
https://www.cnbc.com/2018/05/15/us-rates-surge-and-most-portfolio-managers-dont-know-what-to-do.html
Interest rates are hitting multiyear highs at a time when most portfolio managers have never dealt with this phenomenon before.
Most of them have never operated in a rising rates environment. The median tenure of an active equity manager is eight years, according to Fundstrat, citing figures gathered from Morningstar. The last time rates were in a significant uptrend was from 2003 to 2006 before the financial crisis struck.
"There are a lot of people that haven't been through many things in this youthful industry," said Timothy Parton, a portfolio manager at J.P. Morgan. "The time when rates are rising coincides with a period in the cycle that is tough for any manager. You don't want to be too cautious, but you don't want to be too aggressive too early."
https://www.cnbc.com/2018/05/15/us-rates-surge-and-most-portfolio-managers-dont-know-what-to-do.html
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