After a decade of unbroken economic growth - at least in the world's strongest economy, the US - one starts to speculate on whether something has fundamentally changed in the nature of economic cycles, writes David Jane, manager of Miton's multi-asset fund range.
It is always dangerous to think 'this time it's different' but it is equally dangerous to ignore structural change and constantly live in the past. In the era since the great financial crisis, policymakers have used a wide range of new monetary tools, all with the explicit or implicit goal of manipulating asset prices and avoiding credit and investment cycles. Prior to this, the economy was prone to a regular series of boom and bust, driven by excessive investment and borrowing, which ultimately unwound as markets moved between fear and greed. Miton's Jane: Are growth stocks overvalue...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
