Coram investment director and senior fund manager James Sullivan examines how the biggest drawdown of world reserves since 2008/9 could indicate fresh volatility for equity markets - should history repeat itself.
A number of weeks ago I was asked by an industry friend my thoughts on the selling which has been initiated by sovereign wealth funds and reserve managers now that economies are struggling to balance their books. The suggestion was that it was going to amount to some serious selling pressure, and perhaps selling with a lack of sensitivity to price. After a period of being below the radar, it is now a topic that is becoming more talked about in certain quarters, and the International Reserve (excluding Gold) World Index paints quite a striking picture. Not since 2008/09 have we seen a ...
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