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We love rising interest rates!

Stropro

Australia's dedicated platform for smart investors.

发布日期: 2022年5月4日

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Anto, CEO and founder, was asked a question on an adviser panel last week.

“What do rising interest rates mean for Stropro and in particular structured investments?”

With a big smile across his face, he paused, then said “We love rising interest rates!”

Here are some of his key insights:

As a bank's funding costs rise, this translates to better pricing on structured investments.
As interest rates rise (rapidly), equity market volatility increases. Higher volatility means uncertainty and uncertainty in derivative markets tend to reflect a higher risk premium, resulting in better pricing.?
Most importantly, the downside barrier built into structured investments allows investors to navigate market corrections.?

His finishing note, “Structured investments are designed to perform regardless of a bull or bear market.”?

With an expected series of rate hikes and increased market volatility, structured investments are set to thrive!?

RBA surrenders to inflation, raising the cash rate target to 0.35%

Market volatility is on the rise as uncertainty prevails on the trajectory of FOMC interest rate increases and the sentiment is that the global economy is slowing.? On the domestic front, for the first time in more than 11 years, the cash rate has been lifted. The RBA?made its own aggressive stance, moving rates from 0.1% to 0.35%. Governor Lowe, has warned that further increases should be expected and interest rates could eventually reach 2.5%. Simultaneously, Morrison played the tune that it was a sign of a strong economy, citing unemployment at historical lows. However it's clear the hot topic of inflation is being avoided with election day looming.

This week our Analyst, Holly, has written an article about the trilogy of economic events that are unfolding in the financial markets. With a 0.25% cash rate increase,? the economic forecast for 2022 may seem dire. But don’t despair, tragedy + time = comedy. Read the full article below to learn how you can leverage volatility in 2022.?

https://www.dhirubhai.net/pulse/trilogy-ancient-greece-series-three-tragedies-performed-holly-brooks/?trackingId=LhyS%2BfvJRAaivqJnM9w8jQ%3D%3D

Read the full article?here.

Our newest team member

This week we welcome Houman Ashrafi?who joins Stropro as a Private Client Associate.

Houman brings strong wealth management experience from his previous role in private banking at Citi. More recently he worked within private capital focused on property and healthcare. Houman is a big believer in the the power of alternatives, which led him to join Stropro.

In his spare time Houman enjoys spending time with his golden retriever and loves rugby league, NBA and F1.