I find this story still valid today. Please look at the latest Sunday times for “Me and my money series”, in one of the section, it was mentioned that an expert on Asian debt capital market is bearish on the market.
“Mark and I have joint bank accounts. He trusts me completely to manage the money.
As we are bearish on the markets, half of what we have is in cash. The rest includes the 25 per cent that we have set aside for property investments, as we are looking to invest in Irish and European commercial real estate, the 15 per cent in equities and the 10 per cent in commodities, bonds and other products.
Mark is a veteran fixed income banker while I have a background in investment banking and equities, so we make a well-hedged team.”
Yet a month ago, I attended a Fundsupermart seminar in which 4 fund managers from East Spring, Lion Capital, Legg Mason and UOB asset management company unanimously urge retail investors to buy high yield bond funds.
Perhaps, they are acting on their boss instructions. Perhaps they have a different opinion than the veteran fixed income banker. Perhaps, they ask the retail investors to buy and they sell.
Which is which? Inside their heart, they knew. And we know.
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