11th January 2021

FINANCE UPDATES – January 2021 – Is it time to invest in bonds?

Last year was one of those years when investors looked
nervously at their portfolios. As the coronavirus pandemic raged,
markets tumbled. Even as news of vaccines brought strong
rallies, it wasn’t for the faint-hearted.

Meanwhile, already meagre interest rates and inflation were
driven to new lows, while the prospect of rates rising anytime
soon seems unlikely as we go into the new year.

One alternative is to look at bonds. This investment class
typically pays higher interest than the banks, and comes with
less volatility than shares (although there’s still some risk).

FINANCIAL UPDATES  – Is it time to invest in bonds?