Look beyond rosy growth numbers, manager warns

Rising rates, trade wars cause concern for Black Creek's Richard Jenkins.

Jade Hemeon 20 September, 2018 | 5:00PM

Richard Jenkins, lead manager of CI Black Creek International Equity, sees a shadow when he looks at the sunny economic growth numbers in various regions around the world.

While growth continues in Europe, Asia and North and South America, a credit-tightening phase has begun in the United States and, more recently, Europe. The U.S. central bank has already raised rates twice in 2018 and is expected to do so two more times this year.

Rising interest rates are often poisonous to robust economic growth as borrowing money becomes more expensive, demand for goods and services falters along with corporate expansion plans, and interest-paying investments become more attractive to investors and pose greater competition to stocks.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Accor SA ADR7.23 USD-5.12
Assicurazioni Generali ADR9.09 USD2.02
BAE Systems PLC ADR26.49 USD-0.39
Glanbia PLC ADR63.91 USD1.62
ICICI Bank Ltd ADR14.97 USD-2.28
Lloyds Banking Group PLC ADR1.86 USD-2.11
Tate & Lyle PLC ADR37.18 USD-0.34

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Jade Hemeon

Jade Hemeon  

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