Ruffer trio: We are increasingly concerned about 'bubbling' market

Managers of the £385m Ruffer IT

The managers of the Ruffer Investment Trust have said there are a number of risks "bubbling up" in the market, which investors are choosing to ignore, as they liken conditions to 2006/7.

One such risk managers Hamish Baillie, Steve Russell (pictured) and Duncan MacInnes pointed to in the investment company's latest monthly report, was the Federal Reserve's policy of tightening its balance sheet. At the Federal Open Market Committee, the Fed indicated it could begin unwinding the US's $4.5trn balance sheet for the first time this year but said the impact on financial markets would be "limited". However, the trio said the draining of liquidity could lead to an increase in market volatility, "bringing to an end this period of passable imitation of Rip Van Winkle", the ch...