Entering the bear's habitat: Should investors watch for a bond buyers' strike?

We believe that there are two types of bond bear market, writes Andrew Clarke, fund manager - fixed income at Sarasin & Partners.

The first is essentially a 'buyers strike' following a strong rally (a case of more sellers than buyers). These tend to be short and sharp. Meanwhile, the second type is caused by a persistent rise in inflation. These tend to be much longer lasting, and much more damaging. The latter appears highly unlikely over the next year or two, but there is a fair chance of experiencing the former.  In the wild, a sensible person would be conscious of the danger of an attack when entering areas that are the natural habitat of bears. If we mirror this logic in investment management, are there hab...