Equities have started the year on the front foot. World stockmarkets have notched modest gains, with a number of US tech giants already posting double digit returns for the year. Leading the way is artificial intelligence champion Nvidia, which is up well over 50%. Bond investors have been less lucky. So far this year, core US inflation has run at a 4%+ annualised rate, defying expectations that price increases will smoothly slow. That stubborn inflation has pushed up expectations for interest rates, with the 2-year Treasury yield rising to 5%. As bond yields have risen, their prices have fallen.
Article originally published by Orbis. FE fundinfo is not responsible for its content or accuracy and may not share the author’s views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.
Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.
