Asset Allocators' Soapbox: Why debt is the biggest risk of all to markets

Asset Allocators' Soapbox: Why debt is the biggest risk of all to markets

clock

The prospect of rising interest rates seems to be a question of when, not if. But what if debt burdens are found to be too crushing? It is a real possibility, writes Andrew Milligan

In conversation with a client, I was recently asked about the greatest risks to the financial markets. Before answering, I ran through various possibilities such as Ukraine, the Middle East or the European slide towards deflation, before answering: debt. They looked surprised, so I explained… Undoubtedly, there are risks from geopolitics. If the situations deteriorate sharply, then there could be a major energy shock to the world economy. Similarly, it matters enormously that the EU, the world’s second largest economy, is seeing such a weak expansion. These are cyclical matters, though, ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Party politics: Why investors should celebrate AIM's 30th birthday, even if the government won't

Party politics: Why investors should celebrate AIM's 30th birthday, even if the government won't

AIM has helped 4,000 businesses raise £135bn since launch

Eustace Santa Barbara
clock 19 June 2025 • 4 min read
AIM at 30: Why advisers should take a fresh look at the UK's junior market

AIM at 30: Why advisers should take a fresh look at the UK's junior market

'We see AIM as a jewel in the crown with long-term appeal for the right clients'

Oliver Brown
clock 17 June 2025 • 4 min read
Taking the rough with the smooth: How to navigate global market volatility

Taking the rough with the smooth: How to navigate global market volatility

'Like investing, smoothing isn't one-size-fits-all'

James Tothill
clock 13 June 2025 • 4 min read