Martin Gilbert: Investors should hunker down and prepare for a long, cold winter

Avoiding freezing of US-China ties

clock • 3 min read

As the days grow shorter and the weather colder, it is apparent that winter is coming in the UK, writes Martin Gilbert - and the same can also be said in relation to financial markets.

October was a chilling month for markets. The S&P 500, Euro Stoxx and FTSE 100 all finished down between 5%-6%, while the Chinese and Japanese stockmarkets lost around 7%. This is not merely a brief cold snap, but probably the start of a prolonged adjustment in market levels and valuations. Asset prices have been supported for almost a decade by supportive monetary policy including very low interest rates and quantitative easing (QE). These supports are now being gradually removed with some concern, not least from US President Trump, that monetary tightening is happening too quickly. ...

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