'Investors have not felt pain like this in markets for some time'

‘We haven't felt pain like this in markets for some time’

London & Capital's Ashok Shah tells Alice Rigby where market volatility could reveal opportunities, how long investors should remain vigilant, and what changing regulations mean for the industry.

 What prompted last week’s spike in market volatility, in your view? The markets have been driven by a tide of liquidity. You have to look at them through the lens of zero interest rates. The central banks are all pursuing different policies, with the Bank of England ceasing money printing, but the Bank of Japan still contributing liquidity to the markets. Meanwhile, the ECB is an unknown variable for the markets as it is unclear when it will start quantitative easing, although it took steps to boost liquidity last week by buying covered bonds. As a result, the amount of money c...