Bargain-hunting at the current stage of the interest rate cycle is no mean feat. But value can be found and there are appealing opportunities on the horizon, writes Paul Brain
Bargains can be defined as "advantageous purchases, especially those acquired at less than the usual cost". But with bond yields at historical lows – and, therefore, bond prices at record highs – identifying them is difficult. Despite escalating geopolitical tensions, financial assets have remained well supported by signs of economic recovery in the US and by expectations of a still-accommodative global monetary backdrop; for example, lower long-term US interest rates and additional easing from the European Central Bank (ECB). Headline inflation has drifted lower across the developed...
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