Markets are expensive, driven by powerful forces which want to turn a 40-year bull market into the first ever 50-year one. That trend is not one to embrace, and standing in its way could put investors in dire straits, writes Jonathan Ruffer.
An eventual market correction won’t necessarily be marked by its depth, the famed British investor writes, but by its speed. Caution may come at a price, but Ruffer believes that cost will take on a different perspective by the time it’s been paid in full.
“Our preoccupation with fear makes us the gazelles of the investment market, always alert to dangers,” Jonathan Ruffer says in his latest note. “But we are not pathologically fearful. Fear may keep you from losing your money, but it also stops you making it.”
It is perfectly possible that some inflationary measures fall back through zero, and prices actually deflate in an odd month, says Ruffer chair Jonathan Ruffer. If that happens, the complaisant assumption that inflation will go back to sleep again might look justified – but it will be a false dawn.
