Investment Conundrums: Sarasin's Monson on 'blue sky ahead but possibility of short-sharp storms in between'

Shocks could be caused by end of QE, global debt or populism

Strong prospects for investors over the mid-term are under threat from the possibility of a "short, sharp shock" in global markets, similar to that seen in 1987, according to CIO of Sarasin and Partners Guy Monson.

Monson, who is also lead manager of the JSS Thematic Equity fund and co-manager of Sarasin's Global Equity Opportunities and Global Dividend funds, said the firm's investment committee faces the challenge of "blue sky ahead but the possibility of short-sharp storms in between". He said: "It is an enormously exciting time to be investing. For the first time since the global financial crisis, we have simultaneous global growth in all of the major economies, a picture-perfect soft landing in China and a rebound in global trade. "This is extremely powerful for dividends and headline earni...