Market is ideal for risk-averse bonds

By Charles Rawson is a fund manager at Exeter Fund Managers Equity markets appear to be in the second-worst bear market in fifty years and have suffered their worst three-month decline since 1987. Although they have bounced substantially from their recent lows, they have lost around 20% this year and around 40% since the peak of the technology, media and telecoms bubble in December 1999. No one is sure yet if a genuine recovery in equities is imminent or whether markets are set to plumb much lower depths. It is ironic that the background now, with inflation, interest rates...