Fixed income outlook - Is it time to consider debt market opportunities?
15 min read 13 Sep 22
In this update, Jim looks back at recent developments in bond markets and considers some of the themes such as inflation and central bank policies that are likely to dominate markets in the coming months.
The key points are:
- Investors have become increasing concerned about the risk of a global economic recession, with economic activity in Europe likely to be affected by uncertainty over gas supplies.
- There are signs that US inflation may have peaked, although we believe many of the forces such as globalisation that kept inflation low for so many years could start to unwind.
- After significant declines this year, we believe there are long-term opportunities in the fixed income space for flexible and diversified investors.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.