Shaken and stirred: How to beat the fixed income hangover

Aberdeen's Bruce Stout, manager of the £1.4bn Murray International trust, has urged investors to diversify out of bonds to avoid heavy losses when central banks stop the printing presses.

Stout, speaking to shareholders as the trust reported its annual results today, said investors are underestimating the potential consequences of unprecedented central bank stimulus. "A lethal cocktail of unparalleled levels of global debt and unparalleled global money printing, shaken and stirred by numerous financial indicators at multi-century highs/lows, suggests a global fixed income hangover is fast approaching," he said. "There is no precedent within fixed income history to assess the likely damage, but significant sums of money will be lost." He added the toughest challenge...