Should investors buy this correction yet given the risks in Europe
Should investors buy this correction yet given the risks in Europe? We have been warning of the prospects of a European bond sell off for some time. The Reserve Bank's assistant governor, Guy Debelle, effectively supported our stance this week, saying the next sell off, particularly in fixed income, could be relatively violent when it comes. As we have noted, European bond markets have to correct. How they correct and the timing is going to be a very crucial issue for markets. There are other risks, and it's very hard to see a significant rally in equities from here unless those things play out. Yes this correction is an opportunity. But the risk in European bond markets means investors should demand a margin of safety before buying aggressively in this correction. Read our latest report: (VIEW LINK)
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