Peak interest rates are in sight - OMBA director Mark Perchtold

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After the steep climbs in interest rates, we could finally be approaching the peak. That is according to Mark Perchtold, the founding director of OMBA Advisory and Investments. This perspective comes on the heels of remarks from prominent figures in finance. Bank of England Governor Ben Broadbent said it was an open question whether interest rates in the UK would continue to rise. At the same time, Jamie Dimon, the CEO of JP Morgan Chase, issued a stark warning to Wall Street, suggesting that the Federal Reserve might not be finished with its aggressive interest rate hike campaign in the battle against elevated inflation. During an interview with Biznews, Perchtold said, fortunately, inflation is trending downward, which could pave the way for central banks to announce rate cuts in the future. However, he cautioned that on the flip side of the coin, such rate cuts could potentially trigger a recession in developed countries. Despite ongoing geopolitical tensions, Perchtold remains bullish on China. He said China trades cheaply, and the bad news has been priced in."They have stopped making big policy changes and are supportive of platform business," he says. One of the changes that OMBA has made to its portfolios is moving some of its S&P 500 allocations into the S&P 500 Equal Weight Index.
5 Oct 2023 7AM English South Africa Investing · Business News

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