We’ve been noticing early warning indicators of China risk flaring up and those risks have now become real.
Inflationary pressures have been building globally and particularly in the US. The rise in breakeven inflation rates over the past two months shows that markets have begun to price this in.
The expression ‘steady as a rock’ is associated with stability, steadfastness and reliability. The kinds of characteristics that fund managers like to co-opt into their firm names. In financial markets uncertainty is always present; it’s just the degree of it that varies.
With the festivities behind us and a new year ahead it is a good time to reflect on what to expect from fixed interest markets. More of the same, or will the end of zero interest rates in the US bring something different?
Bond yields across the major fixed income markets are currently at low levels relative to history, causing investors to question whether the asset class can continue to deliver an attractive return.