Renowned investor Anthony Bolton has predicted a further phase to the bull market on expectations Western economies will avoid a double dip recession.
Bolton, who launched his China trust just ahead of the recent market downturn, says while the world still has low interest rates and a lot of liquidity, investors will look to increase exposure to risk assets once confidence improves.
"I do not have as strong a market view as I had at the beginning of last year, when I felt all the signs were aligned for a change in trend," Bolton told Investment Week, IFAonline's sister publication.
"But from early on I felt we were in a multi-year bull market. Most bull markets are more than one year in my experience. We always were going to have a decent consolidation phase in the bull market and this is what we have seen.
"We are returning to a low growth world in the West and not a double dip. I am not expecting economies to go back into reverse but if they did I would have to revise my views. It would not make me ultra-bearish though."
Bolton says the market falls of 2007-2009 are still weighing on investor thinking.
"As we have lived through one of the worst downturns we have ever seen and the financial crisis, we have all got too influenced by the recent past," Bolton adds. "The sort of thing we went through was once in a lifetime."
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