Jamil Al-Hallaq, Head of Investments Department at Riva, the investment arm of Al-Othaim Holding, said in an interview with Al-Arabiya that the debt market provides a good investment opportunity at the present time, while controlling the investment period, considering that the terms between 5 and 7 years are appropriate.
On the other hand, he saw that the stock market is still expensive even if it fell by an additional 10%.
On the other hand, he said that the Bank of England did not use all the mechanisms available to it, adding that the Bank of England will continue to raise interest rates, and that it will intervene in a way that may surprise investors on several fronts.
He explained that the Bank of England will raise interest rates in the short term, while controlling the residential mortgage market as real estate sector It is important for Britain’s economy, as well as the need to reorganize pension fund investments, noting that it may intervene in the exchange market if the sterling drops suddenly.
Al-Hallaq stressed that the most important thing at the moment is to what extent the economy will bear the high-interest environment, and not the final interest level that the Fed will reach at the end of monetary tightening.
He expected the yield curve reversal on US bonds to increase, because expectations are still focused on a possible recession as the Fed continues to tighten monetary policy.
He said, “Every 1% increase in interest affects the economic growth of countries in varying proportions according to the economic situation of each of them, in addition to its impact on the valuation of assets in the markets.”