Richard Colwell, head of UK equities and manager of the £4.1bn UK Equity Income fund at Columbia Threadneedle Investments, has said the big issue of how central banks navigate this period of quantitative tightening will create risks as well as opportunities, pointing to the polarisation of asset prices as one of the "unintended consequences" of quantitative easing (QE).
The manager said the current environment was very similar to the lead-up to the dotcom bubble in 2000 and 2001, whereby if the market viewed a stock as a disruptor there was no limit to its valuation,...
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