Bonds are dead: GMO
“I am well aware of the dangers of proclaiming the death of an asset class,” says James Montier at GMO, who does so anyway, advising higher cash holdings.
The lack of value in fixed income is rendering the asset class useless to investors, argues James Montier, a strategist at GMO.
He starts off with a pair of charts that show the fund house’s seven-year outlook for core asset classes, snapshots taken in 2007 and today.
In 2007, GMO was sceptical about the ability of equities to meet historic rates of return, but found improving value in a variety of fixed-income segments:
In its current seven-year outlook, the firm expec…
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