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Bill Blain: What investors fear most
With talks about growth slowdowns, tapering and interest rates being kept at record low levels, bond investors could be forgiven for thinking: "How worried do I need to be?". According to Bill Blain from Mint Partners, there is no need to panic, at least not for now.
He explains that the global bond market won't see a tumble in the near future, and that even though interest rates will rise, this is not in the immediate view.
He also adds that on the equity front, concerns could in fact turn in to interesting buying opportunities. Some of Bill's largest equity clients are currently choosing to turn to sectors where fears are "overdone" which means the stocks are cheap. An example he uses is the mining sector, which is closely linked to China's economy. Glencore, Rio Tinto and Xstrata and have dropped 10% over the past year.
But he warns that when it comes to bonds, this is slightly different and depends on interest rates and when they will rise. Although there is still quiet some time left before that happens.
01:26 minutes
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