We are in the midst of a historic regime change, both political and economic, where money in the financial system that was cheap and plentiful for decades, is now being withdrawn and costs are increasing.
Bonds as safe haven" as featured in so called target-date or life cycle portfolios, eg. Vanguard's highly popular Life Strategy range, is increasingly under examination. In six months, Vanguard's 20% equity version is down 12.5%, and the rest of the range has suffered in proportion to its bond holdings.
Inflation-linked bonds are an untested market with high but unproven promise proactiveinvestors.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from proactiveinvestors.co.uk Daily Mail and Mail on Sunday newspapers.