The U.S. will probably grow faster than the rest of the developed world this year and relative rate expectations will rise. Plus the EM trade is crowded.
Richard CooksonFormer Portfolio Manager/Head:Research
Richard Cookson was head of research and fund manager at Rubicon Fund Management. He was previously chief investment officer at Citi Private Bank and head of asset-allocation research at HSBC.
The Fed has created the biggest financial bubble in history, but rising prices will require a fundamental rethink of monetary policy.
At some stage the bond bull market will crack. There will be trouble if equity and debt prices start moving in the same direction.
The apparent cheapness of European and U.K. equities has nothing to do with geography and everything to do with what companies are in the relevant markets.
Avoiding longer-dated government and corporate debt and keeping to the very short end seems sensible.
In trying to increase by a fairly random amount an index of prices that they largely can’t control, central banks couldn’t have done much more harm.
