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Fasdal: Low yield bonds have outperformed equities

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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.