Liontrust's Cross: 'We would welcome a reassertion of fundamentals on company valuations'

Anthony Cross, co-manager of the Liontrust Special Situations fund, argues investors may need to show substantial resolve when picking stocks for the long term.

A sustained period of ultra-loose central bank policy stretching back to the global financial crisis has conditioned some investors to view the level and direction of policy stimulus as the primary determinant of asset prices.  While central bank policy - particularly that of the Federal Reserve - has been a key influence on the path of economic recovery, we have had longstanding concerns that aggregate equity valuations have become detached from company fundamentals. Should high yield investors worry about the Fed? The 'QE' era has often been a frustrating one for investors...