Marlborough's investment director Geoff Hitchin says bond exposure will be an essential driver of portfolio performance as the developed world attempts to offset the risk of further financial crises.
Robert Peston has compared the current economic situation to living in the shadow of a live volcano for a period of years while the financial system returns to some kind of stable equilibrium. We have seen what happened when one financial volcano erupted in 2000, and another in 2008, and we know as equities fell dramatically, bonds proved their worth. The risk further crises will erupt remains substantial. The only difference now is levels of debt are higher than they were in 2000 and 2008. The US residential property market is being kept afloat only by political intervention, and...
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