INVESTING SHOW: Will more rate hikes be bad news for investors – and which stocks could do well?
Inflation panics have sent interest rate expectations in the UK soaring, even as the US Federal Reserve threatens to stall.
Some are now predicting base rates will rise to as much as 6% as the Bank of England struggles with stubborn inflation, rather than peaking near its current level of 4.5%.
Interest rate expectations coupled with rising government bond yields have sent a shockwave through the mortgage market as lenders quickly close deals and reprice. The average two-year fixed-rate mortgage now stands at 5.9 percent.
But while the Apple Cart in the mortgage market has been quite upset by much higher interest rate expectations, what does this mean for investors?
On this episode of the Investing Show, Richard Hunter and Simon Lambert discuss what interest rates on both sides of the Atlantic could mean for investors and look at the stocks that could do badly and the stocks that could do well.