Lazard's Custis: 'There is a real risk of negative inflation'

UK EQUITIES

Lazard Asset Management's head of UK equities, Alan Custis, tells Annabelle Williams why the politicisation of sectors is likely to increase this year, and how fears of deflation and rising rates are shaping his portfolio

The VIX is at a six-year low. Why has there been so little volatility in equity markets? There is low volatility in everything at the moment: commodities, oil prices, as well as equities. There is the natural reaction that volatility can only go one way, and that would be bad for markets.  Central banks have taken a much greater role in managing the economy, and that is something we have not seen in the past. The market has almost become a bit of a lap dog to following all the nuances of [Bank of England governor] Mark Carney, [Federal Reserve chair] Janet Yellen, and everything they ...