As emotion is wrung from the stock market, it tends to look forward to what the economy looks like on the other side of a virulent downturn. Eventually we will have a Covid-19 vaccine, which will also boost our ailing economy.

Additionally, central banks are unlikely to raise interest rates for years to come – how many countries can afford to pay a higher rate for their burgeoning national debt? For better or for worse, we believe central banks have set the stage for inflation in risky assets, and since we can’t tell you when the show starts, we have to be in our seats in advance. This may mean greater volatility — but we see little alternative as we look out five to 10 years. — FPA Crescent Fund Management..

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