Central bank policies make it harder to understand risk

The policies of quantitative easing and record low interest rates make it very difficult for advisers and clients to understand the risks they are taking when making an investment, according to the guests on the latest FTAdviser podcast. 


Bertie Dannatt, investment director at Ruffer said: “The policies that central banks have used to stimulate markets since the financial crisis have definitely pushed up the prices of bonds, shares and property as it has been a rising tide lifts all boats effect.”


His fellow guest Jordan Shriharan, of Canaccord Genuity Wealth agreed, saying, “the policies have basically put an artificial floor on bond yields, and that effects the price of so many other assets.”


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