Dublin Roundtable: Navigating noise and lower-for-longer growth
By , 18 Feb 16
The precipitous falls seen on stock markets in recent weeks have opened up opportunities for brave managers of long term money, while at the same time ratcheting up the noise and negative sentiment in the round.
Kevin Quinn, investment director at Bank of Ireland was equally dour in his assessment of the landscape facing investors.
“The days of capital secure deposits are gone. The days of zero deposits are upon us and possibly further, and that’s going to be a reality in months to come. That creates a huge challenge for the private investor and the conservative investor.”
As a result of a lack of options in both fixed income and deposits, he added, the bank has put a lot of emphasis on building out its alternatives range.
While he too has been nibbling again at risk assets following the down turn, he said the next few years are likely to be a very difficult environment.
“A simple extrapolation of the US experience of four or five years, near zero is what people can expect and I’m not sure the private investor has fully got that yet, so I think it is challenging in that respect. I think a low growth environment means a low return environment, and probably with more bouts of the type of volatility than we have seen which will make all tasks more difficult.”
Tags: Investment Strategy
