Neil MacGillivray, James Hay: "In my view, there are two main reasons why advisors are avoiding re...
Neil MacGillivray, James Hay: "In my view, there are two main reasons why advisors are avoiding recommending gilts. The rally already experienced by gilts during the last year and the current one (around +15% last year and 5% ytd), gives rise to the supposition that it may well be a bubble on the brink of bursting. The UK Treasury will need to issue huge amounts of gilts in the coming years, to pay for the bank rescues, to finance itself (tax revenues will be lower) and to follow the "quantitative easing" policy. The only reasons justifying gilts are a flight to quality trade, me...
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