Rising interest rates will create casualties and collateral damage in asset prices, but will bring back market discipline. Post pandemic, the global economy is re-opening and so are markets, resulting in excess demand, price increases and what seems to be full employment. QE is in reverse. Central banks are beginning their run to raise interest rates from historically low levels, after using Quantitative Easing programs to provide demand to suppress bond yields. Markets have not gone through such a large transition before and therefore there will be uncertainty. A return of market discipline will require a rethink of what "defensive" even means, and a very different playbook for active management. - Richard Quin, Bentham Asset Management. Earn 0.50 CE/CPD hrs on Portfolio Construction Forum