FE Trustnet readers plan for a bond bear market – Are they right?
Some 70 per cent of FE Trustnet readers are underweight fixed income within their portfolios, according to our latest survey, which also showed that 98.28 per cent of you believe a gruelling bond bear market is possible. 
Many industry commentators have been calling the collapse of the bond market for a number of years now with yields being forced down to very low levels by historical standards.
Although volatility has ramped up more recently, those who have been bearish on bonds have tended to be wrongly positioned, however, as yields have continued to fall thanks to a continuation of easy monetary policies from the world’s central banks, falling inflation expectations and general equity market uncertainty.
Many industry commentators have been calling the collapse of the bond market for a number of years now with yields being forced down to very low levels by historical standards.
Although volatility has ramped up more recently, those who have been bearish on bonds have tended to be wrongly positioned, however, as yields have continued to fall thanks to a continuation of easy monetary policies from the world’s central banks, falling inflation expectations and general equity market uncertainty.
According to FE Analytics, for example, over the past two years both UK gilts and sterling corporate bonds have more than doubled the returns of the UK equity market with much lower drawdowns and volatility.
Saudi authorities are weighing measures that include more steps to restructure subsidies, imposing a value-added tax, and a levy on energy and sugary drinks as well as luxury items. The National Transformation Program will also focus on ways to boost economic growth, create jobs, attract investors and hold government offices more accountable.
Prince Mohammed, who is leading the biggest shake-up of the economy since Saudi Arabia’s founding, oversees the Council for Economic and Development Affairs, which includes the country’s finance, oil and economy ministries. The council, established after his father became king, also controls the PIF.
So the next time you see a $4 pint of blueberries or a $2 head of garlic, think of how much work it took to get that produce to the store or the Farmers Market. Food is often worth much more than its lowest common shelf price, and everyone’s hoping that their fruits and vegetables will catch your eye—and your appetite.
Kurzgesagt examines what's happened to our privacy, civil liberties, and security because of the threat of terrorism.
Botched Doha deal undermines OPEC credibility, oil prices tumble
Oil prices tumbled on Monday after a meeting by major exporters in Qatar collapsed without an agreement to freeze output, leaving the credibility of the OPEC producer cartel in tatters and the world awash with unwanted fuel. Tensions between Saudi Arabia and Iran were blamed for the failure, which revived industry fears that major government-controlled producers will increase their battle for market share by offering ever-steeper discounts. “OPEC’s credibility to coordinate output is now very low,” said Peter Lee of BMI Research, a unit of rating agency Fitch. “This isn’t just about oil for the Saudis. It’s as much about regional politics.” Morgan Stanley said that the failed deal “underscores the poor state of OPEC relations,” adding that “we now see a growing risk of higher OPEC supply,” especially as Saudi Arabia threatened it […]
