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New Year cheer for shares as bonds nurse hangover

New Year cheer for shares as bonds nurse hangover

by Daniel Grote Jan 12, 2018 at 17:01


Stock markets have kicked off this year much as they began 2017, with records tumbling on both sides of the pond as UK and US markets continue to notch up all-time highs.

The latest bull market in equities, born from the financial crisis lows of March 2009, will soon be celebrating its ninth birthday. That's long enough for some investors to question how much further it has to run.

But while some high-profile names have warned we are in 'bubble' territory, others argue we are yet to see the euphoria that typically comes before a crash.

Look beyond the headlines of all-time market highs and the manner in which those milestones have been reached seems a bit more prosaic.

Take the FTSE 100: while six all-time closing highs have been notched up so far this year, the index is only up 1% over that period, as our exclusive Accumulator data table shows. 

That's not to underplay investor bullishness: global stock markets are up 3.1% this year, with some markets, like Brazil and Russia, on a tear, up 10% and 9.1% over the last month.

It's not been such a good start to the year for bonds. Only emerging market debt has escaped the red so far in 2018, amid jitters over the removal of central bank support as quantitative easing efforts are tapered.

Whether it heralds a 'bond bear market' as fixed income guru Bill Gross has declared, is another matter. 


You can access the Accumulator table here.


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Comments  (1)

  • HR Man: 

    It strikes me that Bonds have performed simply as you would expect when the market is so positive - the FTSE is up1% this year whilst Bonds are down 0.9%- just how you would hope Bonds would react!

    11:43 on 15 January 2018

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