The Baby Boomer Investing Era Is Coming to an End
Bonds did great while rates were falling, but now out-of-favor investments will do better as governments use more fiscal stimulus.
So long.
Photographer: ROBYN BECK/AFPWe're in the middle of an investing environmental shift and that means investors will need to be positioned for that change.
For the past few decades, the primary focus of monetary policy makers has been to hold inflation in check, which has made government bonds an ideal investment for a world of falling interest rates and stable prices. But policy makers now see their primary task as staving off downturns and boosting growth and inflation. Central bankers have come out and said governments need to do more to stimulate growth with fiscal policy. The way to invest for unexpected bursts of fiscal stimulus might be assets that have largely been out of favor in recent years, such as value stocks of financial and non-U.S. companies, and perhaps commodities.