Fidelity singles out bonds as pick for 2009

Greetham, manager of Multi Asset Strategic fund, picks out government securities as a particularly attractive asset as central banks continue to slash rates. He says: "Income will be at a premium as deposit rates fall sharply. For more adventurous income-seeking investors, corporate bonds look attractive. Yields are very high compared with those on risk-free government securities, although investors will have to brace themselves for a significant rise in corporate defaults from their current low levels." Greetham believes equity investors face a tug of war between deteriorating earning...