Investec's Stopford: This bull market could last longer than people expect

Work on market cycles

Investec Asset Management's John Stopford, co-head of multi-asset and manager of the £390m Diversified Income fund, has said the current market expansion has further to run despite concerns about valuations, but warned some market indicators are flagging a potential recession towards the end of 2018.

Despite growing concerns about a looming financial crisis, Stopford said most indicators are not "flashing warning signs" that a correction or bear market is imminent. "We are probably in the final stages of the bull market but it could last longer than people expect," he said. "We have done a lot of work on the end of cycles and how long they last and the broad conclusion is there is no age limit on cycles. It is more a function of either running out of road, a policy error or a shock. "The risk of recession on a six-month view is very low. However, on a 12-month view it is beginn...