Marsh equities chief warns of potential market correction

Rich Dell, global head of equities at Marsh, has warned investors of a potential end to the four-year bull market. This caution comes amid recent pullbacks in global sharemarkets, including declines in the S&P 500 and the ASX hitting a three-month low.

Several economic factors are contributing to this volatility. Renewed tensions in the Middle East have driven Brent crude prices above US$105 per barrel, while rising government and corporate debt are pressuring global bond yields. Notably, US 10-year government bond yields briefly exceeded 5 per cent, and Australian 10-year yields reached a 15-year high, fueling inflation expectations and potential interest rate hikes by the Reserve Bank of Australia.

While Dell warns that unsustainable growth, soaring yields, and high oil prices could trigger a correction, BlackRock’s Wei Li maintains an overweight recommendation for emerging markets, citing semiconductor and AI-related resource demand. In Australia, analysts suggest that while energy and utilities may benefit from higher rates, the real estate and retail sectors face significant earnings pressure.