Inflation is not a worry to bonds, suggests Fidelity

The investment house’s fixed income portfolio manager Alex Veys says while inflation is currently sitting at a 10-year high of 3%, investors ought to “focus instead on the opportunities presented by a diversified portfolio of global bonds”. Rather than buying government bonds, where yields are being driven by government expectations, says Fidelity, the real gains to be had are in corporate debt such as the energy and oil sectors - where companies are having to generate assets in a short space of time to buy goods appropriate to their services and meet customer demand – as yields are more ...