Fear of recession good news for bond investors

Professional Adviser
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Exaggerated inflation fears, rate cuts and the potential for a longer than expected recession in t...

Exaggerated inflation fears, rate cuts and the potential for a longer than expected recession in technology spending could be good news for investors in US bonds, according to Bob Attridge, head of bonds and Treasury at Old Mutual Asset Managers. However, Attridge's view is a contrarian one and other managers see signs that the market may be beginning to unwind in the face of improving economic indicators. Attridge says: "Late last year, bond prices rose sharply as investors anticipated a fall in interest rates as policymakers responded to the gathering evidence of a sharp slowdown in...

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