Have Rising Bond Yields Gone Too Far, Too Fast?
Gold is getting trampled on. Bullion traded below $1,200 an ounce as prospects for economy-boosting policies by President-elect Donald Trump help the Federal Reserve gear up for a rate rise, hoisting the dollar to the highest level in more than a decade just as U.S. equities hit records. Even before bond yields ripped through the roof this month, some asset managers had begun quietly shifting strategies in a fundamental way: less index, more brain. Instead of delving deeper into matching benchmarks that are now loaded with negative-yielding debt, they’re returning to more traditional methods of picking according to fundamentals. Franklin Templeton Head of European Fixed Income David Zahn discusses with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Europe." (Source: Bloomberg)