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

Why China's journey to net zero demands investors' attention

Why China's journey to net zero demands investors' attention

China's journey towards net zero could yet prove more rapid than expected

Gabriel Sacks
clock 07 May 2025 • 4 min read
Morningstar CEO: Advisers and industry need 'shared language' around risk

Morningstar CEO: Advisers and industry need 'shared language' around risk

Kapoor points to UK regulation becoming more ‘goals focused’

Sahar Nazir
clock 07 May 2025 • 2 min read
PA360: 'Diversified approach has room for both active and passive' - David Coombs

PA360: 'Diversified approach has room for both active and passive' - David Coombs

‘Volatility is your friend if you are a long-term investor’

Jenna Brown
clock 01 May 2025 • 2 min read