This overarching philosophy is at the heart of everything we do and we believe it has stood us in excellent stead over the years through many challenging periods, including the Global Financial Crisis of 2008 and the Chinese stock market crash of 2015, to name but a few.
We believe the current markets are no less challenging, with the huge amount of money printing, known in the investor world as ‘quantitative easing’, meaning that the central banks of many developed economies have a huge amount of debt on their balance sheets.
This policy tool has pushed yields on government bonds to historically low levels which means that parts of this asset class are no longer the ‘safe haven’ they once were. Is it sensible to put your money into government bonds which are barely paying any income return, with some developed economy government debt even having negative yields? Effectively you are paying them to hold that asset!
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