Fidelity singles out bonds as pick for 2009

Deflation fears and falling interest rates point to investors favouring bonds over equities and cash ...

Deflation fears and falling interest rates point to investors favouring bonds over equities and cash into 2009, according to Fidelity's Trevor Greetham. Greetham, manager of Multi Asset Strategic fund, picks out government securities as a particularly attractive asset as central banks continue to slash rates. He says: "Income will be at a premium as deposit rates fall sharply. For more adventurous income-seeking investors, corporate bonds look attractive. Yields are very high compared with those on risk-free government securities, although investors will have to brace themselves for a sig...