Those hoping for a “great rotation” from bonds to stocks might start by looking for smaller rotations within the equity market. James Mackintosh, investment editor, says the signs are far from uniformly supportive of the bigger rotation.
One extra chart, before the video: monthly total returns on the US benchmark 10-year Treasury bond per month. January saw a loss of 1.94 per cent, including coupon payments, which isn’t great. But it is slightly less than last March’s loss, or October 2011, and pales in comparison with some of the monthly losses in the past. As the chart shows, this is far from solid evidence of the bond bubble bursting. Read more
James Mackintosh is the Financial Times' Investment Editor, writing and presenting the daily Short View column and video. In 16 years at the FT his posts have included comment editor, motor industry editor and hedge funds correspondent, as well as spells in the Parliamentary lobby and Paris. He was the first reporter hired for FT.com, joining two weeks before it launched.
John Authers is the Financial Times' Senior Investment Columnist, writing the Saturday Long View and a regular Monday column. In a 22-year career at the FT, his previous posts have included global head of the Lex column, investment editor, US markets editor, Mexico City bureau chief and US banking correspondent. His latest book is The Fearful Rise of Markets. 