Abnormal economic cycles can offer good opportunities

ON BONDS

Since the credit crisis began, we have been in a different economic environment.

I do not think we are in a normal recession and recovery cycle. We have low and volatile yields, driven by a multi-year de-leveraging process. This is causing serious economic problems across the world and these are dominating the financial markets. These problems – the eurozone crisis, slow global growth – will not go away very quickly, so these conditions are likely to persist. This causes mini-cycles in the markets, driven by phases of sentiment and risk-on and risk-off trends. This has led to some challenging market conditions. These mini-cycles can offer good opportunities for ac...