On the one-year anniversary of president Donald Trump’s inauguration, his administration is more divided than ever with growing murmurs of a government shutdown. One thing the president seems to have unwavering support on is his tax bill, but with treasury yields rising should investors be more concerned?
Though the recent uptick in inflation expectations and the Trump-fuelled reflationary trade have scared many investors away from government bonds, five portfolio managers argue there is still value to be found.
Bond vigilantes could force the Fed into two rate hikes in the first half of next year, Societe Generale’s Albert Edwards has warned.
Carmignac Patrimoine has shifted its focus to US treasuries and credit opportunities in European financials as the managers maintain their bearish view on equities.
James Klempster, portfolio manager at Momentum Global Investment Management, questions whether dividend yields are too high.
