Victoria Hasler, head of research at Square Mile, also warned markets seemed to be ignoring fundamental facts and instead following “sentiment and news”.
She said: “Markets have been ignoring fundamentals, because actually if you look at the fundamentals most economists agree that it’s not that bad. Markets are so spooked by all the other things that are going on and they are ignoring these fundamental signs.”
She added that some volatility can be made an opportunity for good active managers, and urged patience rather than reacting to short-term movements.
“The volatility is not so much a risk, it’s going to make for choppy markets and maybe just if you can be patient and you look through the sentiment and news that you will come out the other side.”
