Buckle in, there's still a way to go: Sherwood
One of Perpetual’s leading thinkers on investment markets believes the market may be in for a number of years of unusual conditions.
Perpetual senior manager, investment market research, Matthew Sherwood said investors should be mindful of the fact that it “may take years for financial conditions to return to ‘normal levels’”.
In a document written for advisers, Sherwood also added his voice to the chorus heralding the likelihood of increased industry regulation, more stringent capital and risk controls and tighter lending standards.
“This suggests that the global shortage of capital will continue, firms will have to continue battling for the limited supply of capital and risk premiums in capital markets are likely to remain high.”
Sherwood said the result of this should be increased investor focus on the health of company balance sheets.
The document prepared by Sherwood examines how many of the ‘investment myths’ of recent years – such as decoupling and the invincibility of commodities prices – have now been exposed.
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