Dr Shane Oliver
A sell off in bonds and shares at the same time is not out of the question, but it’s likely funds are more prepared for this “double whammy” effect than they were in the 1990s, says Shane Oliver, AMP Capital’s Senior Economist.
Not since 1994 have shares and bonds sold off at the same time. Oliver has written about the historical context of the two investment categories in this February note. Jeff Rogers, ipac Chief Investment Officer, has also written about shares and bonds correlations here.
Last time investors saw shares and bonds come under pressure at the same time it was at a time when inflation started to pick up and central banks started to raise rates, Oliver points out.