While fixed income has benefited from the disinflationary process since the end of last year, one portfolio manager said bonds might have climbed “too far, too fast” and there could be a reckoning upon us.

Konstantin Boehmer, co-lead of fixed income and portfolio manager at Mackenzie Investments, said he’s “pretty positive on bonds overall” but there are a number of global growth factors that investors need to be taking into account, such as the re-emergence of China and the strength of the Canadian and U.S. consumer.

“That strength that we've seen there (with Canadian and U.S. consumers) is a little bit of a surprise to many, and then we see financial conditions also becoming looser and looser,” Boehmer said in an interview with BNN Bloomberg on Monday.

“That is an environment where, as a fixed income investor, this doesn't look all that great. We love the disinflationary part but really don't love the growth aspect of it all too much.”

Boehmer said he recommends long inflation-linked bonds, and shorting the U.S. 30-Year Treasury Bond and the Japan 10-Year Government Bond

He and his family members have no personal ownership of any of bonds mentioned, however his firm owns all three.

Check out the full video at the top of the article to learn more.