I am quoted in Saturday’s Financial Times! Fame at last. Actually, I’ve been in the FT before but it’s still nice to get your name in print. I’m not sure whether you need to have a subscription, but you can try this link.
If you can’t, here’s the quote:
There are plenty of analysts who worry that the potential for further turmoil appears to have been forgotten.
Robin Evans, senior analyst at Macquarie Securities, says that this year’s market rally may have lulled investors into a false sense of security.
The “great moderation” – those two decades of low economic volatility – is what most of today’s investors are used to.
“The benign environment from the early 1990s to 2006 is unrepeatable,” Mr Evans says. “Monetary policy has no capacity to smooth shocks as it has in the past and the disinflationary influences of China, in particular, seem likely to wane or even possibly reverse. This suggests that the economic cycle could become more volatile and expansions shorter than they were in the ‘great moderation’.”
With increased volatility in the performance of the world’s economies, Mr Evans expects greater fluctuations in asset prices too.
“Although financial volatility can cause economic volatility, this is not always the case. However, economic volatility is always likely to cause asset market volatility as it fundamentally changes the expectations of economic agents.”
It’s probably gobbledygook to most of you but it’s clear to me!