Market Review: Bonds set for a fall?

As suggested in last month’s commentary (click here to read previous article) the global sharemarket gains of August were not sustained into September. In fact, the markets turned ugly again with global shares down over 11% for the month, the largest monthly fall since August 1990. Some markets were even worse than this, with Germany down 25% for the month! The perilous state of Germany’s economy was covered last month and a nail biting election outcome did not help investor sentiment.

However, there’s a silver lining on every cloud and in this case it is the strong bond market performance (in the developed world) for the year to date.