Ruffer warns of 1999-style bubble in stockmarkets

'This looks and feels like a bubble'

David Brenchley
clock • 2 min read

There are "shades of 1999-2000 in stockmarkets", according to the managers of Ruffer Investment Company, whose current defensive positioning reflects that view.

In their latest note to clients, the management team of the £380m trust warned that the record proportion of initial public offerings (IPOs) of unprofitable companies, potential for an unexpected spike in inflation and the impact of increasingly populist global politics combined were a recipe for disaster for equities. As such, they are currently tilted defensively towards "assets that investors panic into when bubbles burst". Ruffer trio bemoan 'disappointing' year but prepare to be 'greedy when others are fearful' Investment directors Hamish Baillie, Steve Russell and Duncan MacI...

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