High bond yields means bond are buyable again

Recent macroeconomic trends emphasise the need for independent thinking and analysis. While economic experts abound, Newton’s Paul Flood argues, few predicted the abrupt shift from near zero inflation to the current, persistently high levels. Flood says: We are seeing some of the highest bond yields since the financial crisis; in light of this, we believe bonds are buyable again, both in terms of their potential to generate returns and for diversification purposes. In broader economic terms, the real-world impact of monetary tightening isn’t quite biting yet, but we expect to see its effects...