Bond Investors Get Their Fingers Burnt

German bonds tanked over the past week after a prolonged period of gains - along with equities across the globe, highlighting the dangers of herd investing

Coutts 6 May, 2015 | 2:56PM
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Morningstar's "Perspectives" series features investment insights from selected third-party contributors. Here, Alan Higgins, UK CIO for Coutts gives his latest views on market moves. 

Market moves over the past week showed the dangers of following the crowd, as investors rushed to take profit on some of this year’s best-loved trades.

German government bonds were unable to sustain their gravity-defying gains, giving up half of this year’s advance in the face of accelerating German inflation.  The losses came despite continued uncertainty over whether Greece will reach an agreement with its creditors and stay in the Eurozone, which we believe they will.

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Coutts  Coutts provides customised solutions for clients private banking and wealth management needs.

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