Geffen allays China fears but sees bond bubble

Neptune CEO Robin Geffen has dismissed fears China is overheating, but warns there is a bubble forming in bond markets.

Geffen, manager of Neptune’s Russia & Greater Russia, Global Equity, Balanced, and China funds, said his fixed interest exposure is in very short-dated UK gilts, in expectation the bubble is set to burst. “I think there is a bond bubble out there and when it bursts it will be like a game of chicken on the M1 – our view is the swing to equities will be irrevocable. It will only take a sniff of inflation for that to happen,” he says. However, he believes fears of a bubble in China are exaggerated, and expects the country and other emerging markets to lead global growth over the next few...