Standard Chartered: Higher Interest Rates Drive More Cautious Capital Allocation on July 15

According to Standard Chartered, chief strategist Eric Robertson stated on July 15 that interest rates have entered a structurally higher regime. U.S. rates will not return to zero, he noted, with similar increases occurring in Europe and Japan. Robertson highlighted that higher financing costs will force more disciplined capital allocation; while zero-cost funding allowed investment in "truly terrible businesses," rates of 4-5% demand wiser capital deployment. He cautioned that capital allocation faces stricter scrutiny, though this does not signal capital scarcity—U.S. money market funds hold trillions of dollars, and alternative asset managers control substantial capital reserves.
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