Avoid government bonds – here’s why

Sovereign bonds were always supposed to be safe investments. But not any more. Developed-world government debt is a bubble just waiting to burst. John Stepek explains why you should steer clear.

Three cheers for the European Central Bank (ECB).

Mario Draghi and chums are set to pump another load of free money into the European banking system tomorrow. This is happening via the ECB's answer to quantitative easing (QE) the LTRO (long-term refinancing operation).

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.