The bond market, or more accurately bond traders are often treated as oracles of the future impact of fiscal polices, so its worth noting that according to Lipper LESG data (quoted by Stuart Kirk/FT) over the last 20 years, around 80% of European Bond funds underperformed their market indices;
in other words, investing directly in bonds would have four times out of five led to higher returns than by using a bond market trader's aggregation fund.
So much for prescience!
#economics #BondMarkets
@ChrisMayLA6 This is the truth! I thought in my naivete, that it would be close to impossible for a bond fund to underperform, but boy was I right. ;)
if I need somewhat fixed income, my money stays in a high interest account, or I'll buy my bonds myself.
I have enough money to do that, but it is sad that smaller investor are forced to buy funds since they do not have the funds to buy directly.
At least this was the case many years ago, but maybe the market has changed. I hope so.
