'Only a brave central bank would raise interest rates now'

The unprecedented backdrop and uncertain outlook are likely to lead to significant trading opportunities in the US equities class as the year progresses, says Anthony McDonald, senior investment analyst at City Financial

Government bonds may still offer attractive tactical opportunities. Their strength in 2014 confounded all but a very few commentators as economic growth proved disappointing and deflationary forces were very evident. Entering 2015, the consensus outlook was again for economic ‘lift-off' to be achieved and consequently, for government bonds to post losses. But once again, they started the year extremely strongly and despite a sell-off in February, US yields were lower on 12 March than at the start of the year. The US Federal Reserve's ‘dot-plot' interest rate projections clearly show that...