Guy Monson, chief investment officer, and Subitha Subramaniam, chief economist, at Sarasin & Partners, explain the implications the dramatic reversal in global liquidity policies could have for investors.
Until recently, relatively simple rules have governed financial markets: follow the trail of central bank liquidity and reap huge rewards; look for beneficiaries of ‘low forever’ interest rates and enjoy the carry; choose countries with the most aggressive monetary policies and benefit from stronger performance; and, above all, remember to embrace risk, and buy the dips. With central banks standing firmly behind financial markets, these rules have rewarded those investors who have simply put their money to work. Starting this summer though, several noticeable shifts seem to be underwa...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
