Bond Outlook July 9th

While the CPI is way above target, asset prices, notably stocks and housing are falling. It may be therefore more meaningful to see this as a deflationary environment.

Bond Outlook [by bridport & cie, July 9th 2008]

It is not the great greatest claim to success ever made, but over the last few months the bond market has outperformed equities by incurring smaller losses than they, and our recommendation in favour of short maturities has similarly outperformed long maturities. In addition the FT tells us that over the last ten years, bonds have given a modest positive real return and equities a small negative return.

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