Architas' Sweeney: We are in the next phase of a long bubble

Rising 'negative inflation' a systemic risk

Nathan Sweeney, senior investment manager at Architas, has warned the low growth environment will continue for longer than investors expect while he believes equity markets, particularly in the US, have reached a "tipping point".

The manager said rising "negative inflation" was the biggest systemic risk to clients' portfolios as it is affecting wage growth. The Office for National Statistics recently revealed that adjusted for inflation, average weekly earnings in the UK had increased by just 0.2% in February compared with a year earlier; the slowest growth rate since 2014. Sweeney commented: "The inflation which is coming through is negative inflation. We could be in a scenario where inflation is running higher due to rising costs but growth is lower, which could lead to stagflation. Managers warn unwindin...