SaxoTV

Fasdal: Low yield bonds have outperformed equities

603 views
February 03, 2016 asset, asset purchase, asset purchases, assets, bond, bond buy, bond buying, bond buying programme, bond investing, bond investment, bond investor, bond investors, bond market, bond markets, bond portfolio, bond purchase, bond purchases, bond strategy, bond yield, bond yields, bondbuying, bondmarket, bonds, bonds and equties, bonds hedging, bonds market, bonds to equities, bonds update, bonds v equities, bonds v stocks, corporate, corporate bonds, equities, equities prices, equities saxo, equities trading, equity, equity bubble, equity index, equity market, equity markets, equity portfolio, equity portfolios, equity research, equity strategy, equity trading, financial markets, fixed income, fixed income bonds, government bonds, saxo, saxo bank, saxo tv, trading, tradingfloor, tradingfloor.com, yield, yield levels, yield levels low, yield search, yield spread, yields, yields levels
Equity investors have had a very rough start to the year - with most equity indices down around 10%. But on the other hand, the majority of bond classes have performed well with Saxo's Simon Fasdal highlighting US and European goverment bonds in particular.  

Although there's no denying the low yields on offer, Fasdal points out that the old correlation between bonds and equities still kicked in in January. This is a reminder of how important it is to diversify your investment portfolio, he says.

Simon explains that investors should use the dynamics between asset classes to sell out of or buy into other assets classes when the market swings up and down.