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”It would be unlikely that investors will want to bid down yields any more, and they have got down to fairly marginal levels.”

Parker says: ”Nobody is going to get rich lending money to Barack Obama and earning 3.5 per cent.

”One of the great ironies of markets right now is that the traditional safe-haven assets look the most dangerous to us. The yields you are getting on global government bonds just don’t look all that flash, and they don’t seem to be pricing in any of the risks that seem to be out there.”

He says investors have to assume that either Greece, Ireland, Spain or Portugal will default on their loans over the next few years.

MLC Investments strategist Brian Parker