CNBC reports that according to Quilter Investors Portfolio Manager Sascha Chorley, investor concerns about a rise in inflation are misplaced and bond markets are at their most attractive since 2015.
Inflation worries have led to a sharp rise in bond yields over recent weeks — most notably on the benchmark U.S. 10-year Treasury — and an accompanying fall in bond prices (as prices move inversely to yields).
But Chorley voiced skepticism that a steep incline in inflation is on the way. “If you look at market based expectations for inflation, it is true that indications are above the 2% target many central banks set,” he said. “But crucially it has been a steady increase since 2020 rather than a sharp rise.”
He said that, given current bond yields and the shape of yield curves, “this looks like the best time to add into government bonds since 2015. Starting to add some fixed income exposure might be quite prudent in order to add some ballast to portfolios.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.