Today, with US and UK cash yields above 5 per cent and government bonds around 4.5 per cent, there are compelling alternatives, particularly if you believe that today’s inflation targeting will ultimately bear fruit.
I hope we have shown above that this is probable and that, despite the challenges we face, bond yields are starting to look attractive for longer-term investors.
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Guy Monson is chief market strategist and senior partner at Sarasin & Partners
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