SLI's Roberts: Risk assets will sell off post Fed Reserve's QE2

Risk assets are in danger of selling off when the Federal Reserve's QE2 programme draws to a close in June, according to Standard Life Investments' economist Douglas Roberts.

Roberts says worldwide macroeconomic uncertainties will change the direction of financial markets when QE2 ends, in turn halting a six-month bull run for risk assets. Two weeks after QE1 ended last year, risk assets sold off and he expects history to repeat itself. “With there being so many uncertainties with the Japan crisis, peripheral Europe concerns still mounting, and policy tightening in EM markets, I do not believe investors will want to continue their risk appetite post QE2,” says Roberts. “Generally uncertainty is increasing and risk assets will do less well in this env...