Housing markets and stock markets are soaring, but Saxo Bank’s Chief Economist Steen Jakobsen is putting his money in fixed income.

Steen believes low interest rates are fuelling housing and stock markets bubbles. With fixed income offering similar returns, it is in his view a safer bet for investors.

Steen also believes the markets are too optimistic in terms of expectations for US growth in 2015. The market is expecting the US economy to take off next year with growth of around 3.5-4% after five years of sub-par growth at 2% on average.

But Steen does not see that happening. The drop in oil prices has severely reduced the value of the US energy sector, which will impact jobs and growth in the industry. In addition to that, disposable income remains under pressure.

Finally, the US economy will also be impacted by requirements from the US Federal Reserve that US banks hold enough easy-to-sell assets to keep them afloat during a crunch.

Taking these factors into account, Steen believes that US growth for 2015 is likely to be around 1.5-2%.