M&G Investments: Bonds are back after years in the dark
As inflation has started to normalise, many market observers have started to find bond markets attractive again. Yields have risen to their highest levels in over a decade. Corporate debt has recovered, making bond investors comfortable after years of bad returns.
Commentary: Time is running out and inflation is rising
Only the first statement is certain. The first half of 2021 has gone by so quickly that we haven’t had a chance to pay proper attention to all the exciting economic and financial developments. Economic indicators have shown unprecedented recovery in both the U.S. and Europe in the first six months of 2021, resulting in exponential growth expectations for corporate earnings on both sides of the Atlantic. The European industrial outlook, in particular, is taking off.
BNP Paribas expects V-shaped recovery
A study of bear markets shows that in 70 percent of the cases stock markets fell back to a new low. In 30 percent there was a continuing recovery after a severe crash. We are probably experiencing the latter scenario now, according to BNP Paribas Fortis’ chief strategist Philippe Gijsels.
Gijsels says that the bank has been busy buying attractively priced shares and high yield bonds for clients for some time now.