“I would say that the argument for exposure to bonds is going down, and it should be less than 40 per cent for a traditional balanced portfolio,” said De Goey, portfolio manager at Designed Wealth Management. “I’m using some offer memorandum products that pay a regular cash flow based on music royalties … Mortgages if you want an interest income. The real estate market is fairly robust, and I think that’ll be fine.”
In recent months, foreign governments such as Canada, China and Japan have ditched large chunks of their US bonds, a trend which De Goey suggests will be used to combat Trump’s volatile trade policies. The selling off of US bonds from foreign governments should be an alarm bell for those with heavy US bond weighting in their portfolios according to De Goey, who says this is another sign that the bond market will remain uncertain.
“Government bonds are not perceived as…
