Fixed income investing has grown weaker recently as the bond bubble swells to the bursting point. According to the index Barclays Capital Euro, one of the most popular for tracking interest in the European bond markets, the average yield forecast for fixed income investments in 2014 is just 1%. Just three years ago, this number was 4.2%.
Still, investors continue to put some money in these funds, because they are confident that the ECB will take extra measures to stimulate the region's economy. It remains to be seen whether Draghi will take any action on Thursday or wait longer to move. There is little room for profits with fixed income right now, and investors must know that the bubble is about to burst.