Carmignac's Saint-Georges: US policies 'hoovering' up liquidity and global growth

'Three cycles are colliding'

Didier Saint-Georges, managing director at Carmignac, has warned monetary, business and political cycles have all "collided", which will have consequences for global markets.

Since the beginning of the year, the US stock market has gained 8.5%, while its European counterparts are down by an average of 2% and emerging-world markets by 10%. Outperformance by the US stock market is nothing new, but this time it borders on the indecent. Whenever a business cycle draws to a close, as seems to be occurring now, it is a very tricky business maintaining strong investment convictions. In the last leg of any boom, financial markets tend to fall into their worst excesses (high spirits across the board, a dizzying rise in share prices, mounting inflation), which autom...