Further QE likely but will 'end in tears': Leaviss

ON BONDS

M&G's Jim Leaviss says further stimulus measures would not be surprising amid concerns about developed world economic growth. Meanwhile, he believes the economic environment remains supportive of investment grade and high yield bonds.

We believe central banks will continue to keep interest rates at stimulatory levels and, although growth in the US, UK and Europe is likely to remain weak, it will still be positive. We are not expecting a double-dip recession but believe large economies will continue a period of expansion that is sub-trend, often referred to as “muddle through”. With economic growth at these types of levels, proper inroads will not be made into improving the labour markets of these economies the central banks want to see. It is likely the AAA credit rating of the US and the UK will come under pressure i...