Niven: History suggests rate rises do not derail bull markets

Paul Niven, manager of the Foreign & Colonial investment trust, explains how beyond the near-term volatility and fears about navigating future interest rate rises, global equities are actually expected to excel.

It now seems clear labour markets, not just in the US but also in some other major economies, are showing significant improvement to the point where NAIRU (non-accelerating inflation rate of unemployment) levels are close to being breached.  This is likely to lead, at the margin, to some limited upturn in wage inflation from low levels - even despite recent data showing a moderation in US employment pricing pressures. Without overstating the point, an inflection point has likely been reached in terms of inflation and, therefore, US interest rates.  Bears will have us believe any up...