“Say Yes to Bonds” is the one of the key calls of Morningstar Investment Management (MIM) 2024 outlook, along with “Risk Creates Opportunity” and “A Robust Portfolio is Key”. With inflation, volatility and recession still in the mix for 2024, let’s look at what MIM’s experts are predicting next year in the fixed-income space.
As interest rates have risen to combat inflation, investors flocking towards government and corporate bonds have boosted prices in 2023. This follows a disappointing 2022 when bonds fell in tandem with equities and failed to provide the defensive attributes that investors prize.
Even as inflation starts to fall, fixed income remains an attractive asset class for next year, in particular sovereign debt, MIM says: “Government bonds in the developed world currently look as attractive to us as we’ve seen in at least a decade.”
This part of the asset class is a “fantastic pond to fish in”,…
