Global stocks represented by the MSCI All Country World Index have grown by more than 600% despite the many crises the world has gone through for the past 25 years. Surprisingly though, not many local households invested their wealth in shares and securities.

Over the past 10 years or so, investors managed to get away with poor investing habits. Whatever they threw their money at seemed to work out pretty well. However, it may appear that the tide may finally be turning. The truth is there are no clear signals when it comes to putting your money to work in capital markets. This is why we are paid a return to take risks in investing.

Much to the surprise of investors, the stock market posted good returns for 2020 despite the overhang of COVID-19. Most investors know what happens to their bond investments when interest rates change, but what happens to stocks? How do rising interest rates affect our investments and investment strategy?