Justin Braitling, CIO of Watermark Funds Management, believes the bond markets will again be a key focus for investors in 2014

Justin Braitling, CIO of Watermark Funds Management, believes the bond markets will again be a key focus for investors in 2014. In bond markets there needs to be a transition from central bank purchases back to private sector participation - a situation that caused a disruption midway through 2013. Whilst markets currently appear quite comfortable with this concept Braitling believes the way this transition plays out has the capacity to be a significantly disruptive force during 2014. He also believes that markets may be complacent when it comes to inflationary and deflationary forces. Inflation has been relatively subdued for some time and there are now some early signs of inflationary forces taking hold - which is exactly what central banks have been trying to engender. Bond market pricing in response to tapering and inflation will be central investing themes for 2014. Full discussion here