Tuesday, June 3, 2008

Fears surrounding the integrity of central banks persist

Barings takes defensive stance as fears deepen

Baring Asset Management is moving to a defensive stance, as fears surrounding the integrity of central banks persist and there are few signs of a quick recovery in global markets. Andrew Cole, director of asset allocation at Barings, says recent inflation statistics have done nothing to quell fears about the medium-term prospects for the British economy. "We have been concerned by rising inflation expectations," says Cole. "We have been expecting a turnaround in the growth/inflation trade-off for the past 18 months and so we hold a negative view on government bonds.""We may wake up one day and question the integrity of central banks, who have taken all this paper onto their books," he says. "Gold is looking cheap by historical standards and could benefit from this uncertainty."

Posted by jack c @ 09:43 PM (487 views)
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2 thoughts on “Fears surrounding the integrity of central banks persist

  • shipbuilder says:

    People can flock all they want – who has the money? Aren’t we more in debt than we’ve ever been? The best investment you can make is in yourself – your knowledge, skills and health.

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  • stillthinking says:

    But some people do have the money. The housing bubble was a transfer of wealth, and that money is out there, just deposited in banks that might not be able to come up with the readies.

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