Investment Conundrums: Invesco Perpetual's Mustoe warns 'relaxed' investors could be shaken by 'unexpected' interest rate hikes

'Uncharted territory'

Invesco Perpetual's Nick Mustoe is concerned about the lack of volatility and how "relaxed" investors appear to be with current market conditions, as he cautioned surprise rate hikes could be enough to tip markets in the opposite direction.

The CIO said financial markets are "feeling very benign" at the moment, pointing to the VIX trading at low levels last seen in the 1990s. "Investors are feeling relaxed about the environment and the outlook - which is always something that worries me. Maybe something is not being observed?" he said. Invesco Perpetual reduces fees on two Select Trust strategies Mustoe added the strong period of "synchronised growth" seen across the world, which means all nine OECD countries will post positive growth this year, also makes him question where there may be risks. "The biggest risk is...