Rising inflation has forced policymakers to accelerate the reduction in liquidity which, as David Sugarman - Fund Manager, argues has been responsible for much of the past decade’s advance in asset prices. He suggests investors should be focusing on the wider implications of this change in macroeconomic policy rather than on the future direction – and timescale – of inflation. If surplus liquidity has been a tailwind to asset prices, will a reduction in liquidity be a headwind?

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