22 Mar 2019 3 min read

Haters gonna hate (bunds)

By John Roe

Could German government bonds present an opportunity for contrarians?


We aim to be contrarian investors as we believe that unloved assets tend to outperform. This is because when most people dislike an asset, it tends to have sold-off too far and can easily rebound if that crowd of investors gets spooked and tries to buy in a rush.

Right now bunds and other European government bonds fit into that category, largely because of their low yields. Combined with our view that steep interest rate curves are attractive, the negative sentiment from other investors encourages us to own them alongside European equities for the same reason.

To find out more, watch our latest clip from Bloomberg TV.

John Roe

Head of Multi-Asset Funds

With failed football dreams behind him, John applies the same level of enthusiasm to investing and how to improve outcomes by battling behavioural biases. He leads on oil research, but also gets involved in a wide range of macro topics. That love of variety also explains his craft beer fascination. Hard to shut up, he’s a regular guest on Bloomberg, a conference speaker and an LGIM Director. His analytical thinking benefits from being an Actuary with an economics degree and having previously worked as a strategist at RBS.

John Roe