Debt mountain should boost bond markets

Investment week - six of the best conference

Theo Zemek, New Star

To start, why would anyone in their right mind buy bonds when the next interest rate moves are likely to be upwards and we have already begun to see the first step in that process? Second, why would anybody buy bonds when equities are showing very good signs of recovery? Traditionally, most people seem to think the equity is something you buy to get some form of capital growth and bonds to receive income. Looking back over previous bond market performance, up until the mid-1970s, bonds did not do a great deal; you bought them, there were good times and bad times, but the income was more...