These days most people and advisors are recommending importance of bonds in these markets but at the same time there is high inflation every where. It also depends how do you calculate inflation. Here in US you subtract energy, food and import every thing from where ever you can get cheaper will give you artifically low inflation numbers. Few days ago there was interest rate hike in EU. I read recently that in India inflation is more than 10% and similarly in China too. Or at least it is believed, there would be the case in US some time soon. Heeber in his recent interview (there is another thread about it) also suggested that there will be high inflation in US too.

Sooner or later high inflation will lead to high interest rates every where including EM. El-Erain suggests having some EM bonds too. Over the long term this would be  good investment stratagy but would it not hurt bond returns near term if one invest now in bond funds? I am shying away investing in bond funds but on the other hand I am more open to invest in individual bond and to be held until maturity.