Where interest rates are heading and why that’s important

As fixed income markets head into a third consecutive year of losses, investors should assess the likely fallout from higher-for-longer interest rates. Samuel Rhee, co-founder and CIO at Endowus, shared that growth, as the only silver lining, is the biggest risk to future returns for equity and bond markets. Therefore, amidst the unpredictability in a growth-scarce environment, quality is what matters. Quality growth in equities and higher-quality credit in the fixed income markets have performed relatively better and are likely to continue to do so.