For the past 25 years or so the global investment backdrop has been largely focused on deflationary shocks, that is, falling demand as a consequence of competing macroeconomic forces.

In such conditions, cutting interest rates is fairly straightforward and at a time of falling inflation, bonds – especially as part of a typical multi-asset portfolio made up of 60 per cent equities and 40 per cent fixed income – might have provided enough diversification to shield against this economic environment.

Yet in today’s higher inflation world, interest rates are on the rise and bonds no longer offer the soft landing they once did to protect investment portfolios from bumpier market conditions.

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