Summary: In April, bond prices and perhaps high yielding shares hit a peak. Outstanding headwinds include a looming rise in interest rates, an end to QE, a commodity bust and a falling Australian dollar. Maybe investors have to weather lower returns for a while.
Key take-out: The wrong answer for most is not to take on more risk. Perhaps in our local market there is now more value than offshore. It’s also worth thinking about equity income strategies, currency hedging and inflation linked bonds.