Look beyond stocks – here are the best bets in global bond markets

A professional investor tells us where he would put his money. This week: Chris Ainscough, director of asset management at Charles Stanley, picks top bonds.

US federal reserve
(Image credit: US federal reserve)

I struggle to get excited about equity investments in the current market environment. For every “pro” I can name a “con” as we walk the tightrope of monetary-policy tightening alongside slowing growth and inflation. Soft landings. No landing. Hard landings. They all have their arguments and many of them valid. One area where I can, however, see the risk/reward trade-off as skewed in your favour is in fixed income. 

Not often do we talk of equity-like returns within fixed-income markets, especially over the last decade of low yields induced by quantitative easing. But as we survey the fixed-income landscape we see high single-digit and low double-digit returns on offer in many segments of the market. 

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Chris Ainscough, FP Matterley Regular High Income Fund.