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Investing in a Falling Interest Rate Environment

The setback in financial markets in recent years, caused by rampant inflation and sharply rising interest rates, has given rise to attractive investment opportunities in a number of asset classes.

There is an expectation that the interest rate cycle will start to reverse this year in both Europe and the US, and some asset classes should respond positively to this.

On the other hand, as asset prices recover, the income yield from these assets will fall.

In this context, clients might consider investing now in the following assets, in anticipation of a possible fall in rates later in the year or in 2025.

Money Market Funds

pension

These funds mainly invest in short-term money market instruments.

These instruments are issued by highly rated issuers and are either denominated in Euro or systematically hedged to this currency.

Income Opportunities

Wealth Management

Explicitly or implicitly, investment markets value all assets on their future ability to deliver income, over both the short term and the long term.

Income paying assets can be more stable than the average in volatile markets.

Both equity and bond markets currently offer attractive income paying opportunities.

Alternative Investments

pensions

Alternative assets such as property, infrastructure and renewable energy all represent potential income sources currently.

Need to know more?

No matter what stage in life you are at, our team of seasoned professional advisors will tailor an asset allocation for your portfolio that optimises investment returns by seeking the highest possible return for the level of risk that you are willing to take.

Talk to us

Contact our Investment Experts on:

01 2375500
justask@harvestfinancial.ie

This marketing information has been provided for discussion purposes only. It is not advice, it is provided for general information purposes only and does not fully take into account your financial position, investment needs and objectives, attitude to risk, liquidity needs, capital security needs, capacity for loss, etc. It should therefore not be relied upon to make investment decisions. Prior to any formal investments taking place you will be provided with a detailed suitability letter taking into account all the above and outlining why the investment(s) are (not) suitable for you.