Low growth, high returns: why Europe is penalising the stock market and rewarding bonds
By Felipe Villaroel What a fixed-income manager is looking for is an environment of low but positive growth, contained inflation, banks that do not take on too much risk, and under-represented technology and higher-risk sectors. The reason is simple: they receive the same coupon and recover the same principal regardless of how much a company grows. They do not share in the extraordinary gains that might result from taking on…









