How to earn a decent income without undue risk

ON BONDS

Baillie Gifford's Ken Barker discusses which fixed income sectors offer the best value.

This has been a quarter of weak growth and declining confidence and almost all indicators of economic activity and confidence have flattened or turned down, especially in the developed countries. An easy way to quickly look foolish is to make short-term predictions in a febrile atmosphere like this. Instead, let us pull back and look at more persistent trends in bond markets. In particular, we should consider the great investment puzzle of today – how can one earn a decent income without undue risk? I will not waste time recommending government bond funds that barely earn enough inter...