Jamil Al-Hallaq, Head of Investments Department of Riva, the investment arm of Al-Othaim Holding, said in an interview with Al-Arabiya that the debt market currently offers a good investment opportunity, while controlling the period. of investment, considering that terms ranging from 5 to 7 years are appropriate.
On the other hand, he saw that the stock market is still expensive even though it has dropped a further 10%.
On the other hand, he said that the Bank of England has not used all the mechanisms at its disposal, adding that the Bank of England will continue to raise interest rates and that it will intervene in a way that could surprise investors on several fronts.
He explained that the Bank of England will raise short-term interest rates, controlling the residential mortgage market as real estate sector It is important to the UK economy, as is the need to reorganize pension fund investments, noting that it could intervene in the foreign exchange market if the pound suddenly falls.
Al-Hallaq stressed that the most important thing right now is to what extent the economy will support the high-interest environment, and not the ultimate interest level the Fed will reach after monetary tightening ends.
He expected an increase in the US bond yield curve inversion, as expectations are still focused on a possible recession as the Fed continues to tighten monetary policy.
He said: “Each 1% increase in interest affects the economic growth of countries in varying proportions according to the economic situation of each of them, as well as its impact on the valuation of assets in the markets.”
