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1.Market Observations, 8.Was Sticky

24 Nov 2016 (AFR) – Wilson Asset Management’s Geoff Wilson’s waiting for the ‘great unwind’ of liquidity

(24 November 2016, AFR, p32, by Philip Baker)

‘The ideal scenario right now for high-profile fund manager Geoff Wilson from Wilson Asset Management is for another global financial crisis to hit. For him, that would be perfect. Nothing better. For sure, shares would be smashed, property too, as he thinks valuations for both those asset classes are on the very high side. But it would also mean he could start to spend some of the cash, as much as 42 per cent, that he has built up in his main fund.’ <snipped…>

‘What worries Wilson now more than anything else, and a major reason why he holds so much cash, is how the world handles what he calls the great unwind. How, after years of easy money and falling interest rates, will global investors deal with a scenario that’s never happened before? That is central banks taking away liquidity rather than adding to it.’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

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