Warning on fixed interest

Tim Farrelly | farrelly's Investment Strategy | 12 July 2019 |

When the June 2019 edition of the Dynamic Asset Allocation Handbook was written in late May, Australian 10-year bonds were at 1.64% per annum. A month on and they’ve just dipped under 1.3% per annum.

This is quite a move. It means that fixed interest investments are providing even lower returns going forward and with much higher short-term risk. An investment in an index bond fund has gone from providing expected returns of 1.7% per annum...