THE chief investment strategist of L&G Investment Management has raised concerns over global monetary conditions, which he deems too loose amid growing inflationary pressures.
The past five years have seen the strongest global growth in recorded economic history, said Julian Garran, but he believes the bull run is no longer sustainable. Garran compared current economic conditions to those of the 1960s, when a number of global factors combined to push up inflation. Similarities between the decades, said the strategist, include nominal growth outweighing bond yields, high corporate cashflow yields, and high productivity growth in emerging markets. These factors combined led to a huge rise in inflation. However, Garran asserts that the role of oil flows today is ...
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