Why your portfolio can't wait for the first interest rate cut

Every month for the last few months, a new central bank has joined the interest rate-cutting cycle. First were the Europeans and then the Canadians. This month, the Bank of England joined the list, with the US Federal Reserve and Reserve Bank of New Zealand likely to follow in quick succession.

All of these central banks are starting to cut interest rates amid slowing economies and volatile markets. A 0.2% rise in unemployment and a small miss in the US job creation figures were enough to send the equity market substantially lower.

While the RBA has not ruled out rate hikes, we continue to believe that the next move will be a rate cut, given that core inflation appears to be easing and we expect further global volatility.

But investors cannot afford to wait for the first actual interest rate cut. Markets move well ahead of central banks and by the time the first cut has come, you've likely missed the boat. So how can investors prepare their portfolios with this theme in mind? You'll find out in this video.

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