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..

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now