We prefer European
equities over government bonds and credit amid a sustained, above - trend economic expansion and a steady earnings outlook.
Not exact matches
Colonial, which recently announced plans to move its headquarters to Madrid from Barcelona, where Catalonia's local
government is in turmoil
over its attempt to split from Spain, said the transaction was fully financed through a combination of
equity,
bonds and the disposal of non-core assets.
What about the argument that the
equity - risk premium (the premium that investors demand
over risk - free assets such as
government bonds) has fallen close to zero because of greater economic stability?
In addition, sovereign wealth funds — which generally diversify their portfolios to include a small portion of alternate assets such as gold, private
equity and real estate — are likely to raise their allocations following the low yield in
government bonds over the last couple of years.
In short,
equities should outperform
government bonds and deliver reasonable returns relative to alternatives
over the medium - to - long run.
We remain overweight
equities over both 3 and 12 months and balance this with an underweight in cash
over 3 months and an underweight in commodities and
government bonds over 12 months.
But the boom in
equity markets has driven down their «spread»
over government bonds to the lowest level since before the 2008 — 09 financial crisis.
Fixed income has a role in portfolios and we like credit
over government bonds, but we generally prefer
equities over bonds in a low - return world.
Against this backdrop, we broadly prefer
equities over fixed income, and selected credit
over government bonds.
«
Over the medium - to - long term, the total return on global
equities should easily surpass [
government]
bonds, even factoring in very weak growth.
He simulated the performance of $ 1 invested in an uncapped large - cap
equity index FIA compared to the performance of long - term
government bonds over the period from 1927 through 2016, net of expenses.
But if that
government bond goes to 10 %, it changes the value of this
equity bond that, in effect, you're buying... when you buy an interest in... anything, you are buying something that,
over time, is going to return cash to you... And those are the coupons.