Next year will still be positive for bonds

Even if the US Federal Reserve raises rates, the long end of the yield curve will continue to rally, says John Woods, managing director at Citi Investment Management.
John Woods
John Woods

Has 2014 been a good year for investing in Asian bond markets
If you had asked me this question one year ago, we were looking at the fixed-income space with some trepidation. The theme was the Great Rotation, the idea that everyone was looking to sell fixed-income and buy equities.

Which they got half right.
Yes. The market overestimated the bond yield story. This was the incorrect call by almost 100% of The Street. The broad consensus had been extremely negative fixed income.

It didn’t take long for people to realise they were wrong.
I’d say the call became suspect by...

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