How to protect yourself against a bond and equity sell-off

Investment Quorum’s Peter Lowman says investors now need to focus on value and recovery-orientated funds if they want to protect their portfolios against a double sell-off in both bonds and equities.

By Alex Paget, Senior Reporter, FE Trustnet
Tuesday May 19, 2015

Investors should now turn to value and recovery-orientated UK equity funds if they want to protect their portfolios, according to Peter Lowman at Investment Quorum, who says the likes of CF Miton UK Values Opportunities and Schroder Recovery are likely to be the best performers in the event of a correction in both bond and equity markets.

Thanks largely to an extended period of ultra-low interest rates and huge helpings of quantitative easing (QE) from the world’s central banks, both bonds and equities have performed strongly since the market bottomed after the global financial crisis in March 2009.

However, many experts are now concerned that a bubble in bonds is bursting as improving economic data has brought expectations forward about a possible rise in interest rates in the US. Some of this pain has already been felt as over the past few months yields on US, UK, eurozone and Japanese government bonds have all risen substantially.

Please read the full report here.  Contact Me if you would like some help with rebalancing your portfolio.