Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a1083155

New Year cheer for shares as bonds nurse hangover

Our Accumulator data table tells the story of a strong start to the year for stock markets. But it's been a different story for bonds.

 
New Year cheer for shares as bonds nurse hangover
 

Stock markets have kicked off this year much as they began 2017, with records tumbling on both sides of the pond as UK and US markets continue to notch up all-time highs.

The latest bull market in equities, born from the financial crisis lows of March 2009, will soon be celebrating its ninth birthday. That's long enough for some investors to question how much further it has to run.

But while some high-profile names have warned we are in 'bubble' territory, others argue we are yet to see the euphoria that typically comes before a crash.

Look beyond the headlines of all-time market highs and the manner in which those milestones have been reached seems a bit more prosaic.

Take the FTSE 100: while six all-time closing highs have been notched up so far this year, the index is only up 1% over that period, as our exclusive Accumulator data table shows. 

That's not to underplay investor bullishness: global stock markets are up 3.1% this year, with some markets, like Brazil and Russia, on a tear, up 10% and 9.1% over the last month.

It's not been such a good start to the year for bonds. Only emerging market debt has escaped the red so far in 2018, amid jitters over the removal of central bank support as quantitative easing efforts are tapered.

Whether it heralds a 'bond bear market' as fixed income guru Bill Gross has declared, is another matter. 

 

You can access the Accumulator table here.

 

1 comment so far. Why not have your say?

HR Man

Jan 15, 2018 at 11:43

It strikes me that Bonds have performed simply as you would expect when the market is so positive - the FTSE is up1% this year whilst Bonds are down 0.9%- just how you would hope Bonds would react!

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

FTSE recovers with first positive week after crash

by Gavin Lumsden on Feb 16, 2018 at 11:44

Sorry, this link is not
quite ready yet