A mass dash out of equities and into cash has come as the IMF unveils bleak economic projections for what it says could be the worst downturn since the Great Depression.
Fears are rife over the potential impact of widespread downgrades of investment-grade corporate bonds on insurance portfolios.
Lombard Street Research’s Charles Dumas says the global economy will fall into recession and China won’t be able to help. US equities are best poised to lead investors to recovery.
Isaac Souede, chairman of $20 billion fund of hedge funds Permal, says China does not respect the euro and that an American double-dip recession would spark protectionism in the US.
Tony Tan, GICÆs deputy chairman, expects the next few years to be the most challenging for SingaporeÆs sovereign wealth fund since its creation in 1981.
Market falls are providing buying opportunities, even in China where some share prices have dropped by as much as 50%.