3 reasons for the global equity rally to continue despite rising rate fears

SINGAPORE (Feb 6): Global equities may have corrected over the past week on inflation and rates concerns, but this does not herald the start of a bear market, says the CIO office of DBS Bank.

In a Tuesday report, Hou Wey Fook says he remains constructive on equities amid low recession risks and robust earnings momentum.

While Hou acknowledges how rising bond yields as well as the recent rebound in energy prices have added fuel to the argument for rising interest rates, he maintains that a secular bear market for bonds and equities is “a bit of a stretch” – namely for three reasons:  

---

Related Stories

• Fed rate decision could be the prelude to a March cut
• MAS set to hold monetary policy as inflation persists
• Where will the global economy land in 2024?

---