Economic Affairs: Making sense of market pessimism

With little prospect of good economic news, market pessimism is rational

If you had bought a 30-year Singapore government bond at the start of the year, by Aug 15 you would have been sitting on a capital gain of more than 16 per cent. This staid investment, to which hardly any investment guru pays much attention, has outperformed most stocks. In fact, investment in any hard currency sovereign bond would have been a big winner.

There are some US$16 trillion (S$22.2 trillion) worth of bonds that have negative yields - in other words, their prices have gone through the roof.

Please or to continue reading the full article. Learn more about ST PREMIUM.

Enjoy unlimited access to ST's best work

  • Exclusive stories and features on multiple devices
  • In-depth analyses and opinion pieces
  • ePaper and award-winning multimedia content
A version of this article appeared in the print edition of The Straits Times on August 21, 2019, with the headline 'Making sense of market pessimism'. Print Edition | Subscribe