2023-12-13 20:34:25
Was it ever a law of the market? Good year for bonds, a bad year for stocks and vice versa. Both asset classes suffered severe setbacks last year, but they also shone in unison this year. And what will 2024 bring? Luca Paolini, chief strategist at Pictet Asset Management, is convinced that both bonds and stocks will have a good year. He expects stocks in Europe to have more positive surprises than bonds, but the latter in the USA.
Stefano Zoffoli, chief strategist at Swisscanto, is more specific: “With bonds, even a small decline in yields is enough to produce high returns. Specifically, a 10 percent return in dollars is possible for 10-year US government bonds with a yield decline of 0.8 percentage points from today’s 4.5 percent.” Government bonds are attractive in this environment and should be given a higher weighting compared to previous years, he advises. But Zoffoli doesn’t just rely on government securities. He still considers corporate bonds to be interesting, but points out that they need to be carefully selected, as the risk of default increases in this segment.
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