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A New Market Phase Amid Higher Inflation And Raising Interest Rates | Interview With Al Arabiya

A New Market Phase Amid Higher Inflation And Raising Interest Rates | Interview With Al Arabiya

Al Arabiya Channel hosted Abdulmohsin Al Omran, Founder and CEO of The Family Office, to shed light on the new phase of repricing amid higher inflation and rising interest rates. Below are highlights of the interview:

Jun 29, 2022Market Insights- 1 min
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  • We are entering a phase of higher inflation and rising interest rates that will be marked by repricing. Last December, The Family Office had warned that volatility might force markets to reprice and cautioned investors to abstain from borrowing. Markets might also enter a stagflation phase that would have serious repercussions.

  • The Federal Reserve remains behind the curve in fighting inflation, and the 0.75% rate hike is an admission to previous mistakes.

  • Inflation influences markets positively in normal circumstances and corporate earnings increase with rising prices and sales. But when inflation is accompanied by a slowing economy, rising prices and liquidity shortages limits consumers’ purchasing capacity, leading to lower corporate turnover and earnings and possible losses.

  • Abdulmohsin Al Omran advised investors to avoid borrowing at this point to limit their losses.

Watch the full interview above.

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