Episode #94: 1987 vs now - rising bond yields (& war in Israel) and the risks for shares

Simplifying Investing

The rise in bond yields has left shares offering a low risk premium over bonds leaving them at risk of more softness. The conflict in Israel this week has added to the risk, although the threat should be minimal if Iran is not drawn in, avoiding a severe impact on oil supplies. AMP's chief economist Dr. Shane Oliver looks at the parallels with the run up in bond yields prior to the 1987 crash, current geopolitical tensions and what falling rates of inflation spell out for shares over the next 12 months. Important information: This podcast is general in nature and hasn’t taken your circumstances into account. It’s important you consider your personal circumstances and speak to a financial adviser before deciding what’s right for you. Any general tax information provided is intended as a guide only. Remember the value of investments may go up or down and you may not get back the amount you invested. The opinions and views featured in this podcast reflect the individual’s own. Date of publication 11 October 2023. AWM Services Pty Ltd ABN 15 139 353 496, AFSL No. 366121, part of the AMP Group.