This year, geopolitical shocks have hit business sentiment in an already aged expansion
(although easy monetary and fiscal policy have helped to temper pessimism). Disappointing data, in Europe and recently in the US, has dampened growth prospects.
Nevertheless, it may be too early to call time on the expansion; pockets of opportunity could still exist. For investors looking to acknowledge the downside risks without staying fully on the sidelines, convertible bonds offer a way to approach today’s markets.
