Adrian asks 'Is the bond bubble set to burst?' for Money Observer
In his latest article for Money Observer, Adrian Smith takes a look at the current decline in bond yields, why you should be examining which bonds you hold, and some alternatives to the big retail bond funds.
Is the bond bubble set to burst?
Since Mark Carney took over as Governor of the Bank of England, much has been made in the media of a difference in style compared to that of his predecessor, Mervyn King. With City commentators seemingly in awe of the fact he takes the tube to work rather than a chauffeur driven car, we are in danger of overlooking just what this new era could mean for that good old workhorse of investments, the bond. The value of bonds have been driven higher and higher by the government's money-printing measures (quantitative easing or QE) in the past three years, but following two months in which their value has fallen, commentators have speculated that the bubble could be about to burst.
Will Mr Carney float the current bond bubble to new heights, or will the bubble simply burst?
Advice is up to date and presented in a form that is understandable.Mrs S - Leicestershire