Growth, growing and grown ups: Mature investment in a rising rate world

It may sound like a bad joke: “What do prisoners, senior citizens and market investors all have in common?”. But for a certain subset of each, the answer is very real: Chronophobia or fear of the future. Classified in the DSM-5, its sufferers are often characterised by acute anxiety or distress when pondering future events.

In essence, the best-case scenario for those investors flocking to value is that interest rates do, in fact, impact growth stocks and they merely overpaid for safety. But if interest rates do not have such an effect? They may have sold growth at a loss and paid a premium for value. As was shown in New Age Alpha’s recent piece about interest rates, the link between rates and future stock returns is distorted at the very least, if not utterly uncorrelated. This makes certain investors’ Chronophobia all the more bewildering. Just as most grown-ups know the boogie man isn’t real, so too do they recognise that a single action often results in varied, unpredictable actions a la The Butterfly Effect.

Any investment performance figures quoted herein are for illustrative purposes only and should not be construed as investment advice. Investment advice is offered through New Age Alpha Advisors, LLC a wholly-owned subsidiary of New Age Alpha LLC.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Low economic growth hinders government to service its debt: Government - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Finance Minister Enoch Godongwana says the state is faced with a multitude of challenges and is working hard to resolve these problems. Mncim Still wondering when Twitter will give us a button for 'L.O.L', it is really becomming urgent now. Working hard to finish whatever is left of it. 1 SAA is gone. 2 Prasa is gone 3 Denel is gone And now Jamnadas came back from the 'grave' to deal with Eskom.
Source: SABCNews - 🏆 37. / 51 Read more »

These are the fastest-growing companies in South Africa right nowThe Financial Times and data company Statista have published their inaugural ranking of Africa’s fastest-growing companies, with several major South African firms included on the list.
Source: BusinessTechSA - 🏆 24. / 61 Read more »