“When Does TINA (There Is No Alternative) End?”, Chris Watling, Longview Economics

David Osman of the IRF Podcast team is joined by by Chris Watling, the founder, CEO and Chief Market Strategist at Longview Economics, which is based in London. ----more----Many global investors have come to the conclusion that the equity markets are the best place to investment at present. This has been an important factor driving the rise in stock markets to higher and higher valuations in recent times. Will this continue? When will it end? What happens when it does end? In this podcast, Chris Watling of Longview Economics discusses these questions and other important issues. He explains how for more than a decade the unconventional monetary policies that were implemented by the world’s major central banks, mainly in response to the global financial crisis, have driven down interest rates and government bond yields, created an abundance of liquidity, distorted investment opportunities and encouraged more risk taking. This has led to a major bubble in the global financial markets. Chris points out that the creation of abundant liquidity has been the most important factor driving equity valuations to extremely high levels. For many investors it has seemed that there has been no alternative (TINA) to investing in the equity markets in recent years. But this situation will not continue indefinitely. Chris discusses the outlook for world inflation and monetary policies. He sets out his assessment of when TINA will end as central banks tighten, interest rates increase and stock markets weaken. In conclusion, Chris answers a crucial question for global asset allocators: When should portfolios be switched from a ‘risk on’ to a ‘risk off’ strategy?