Speaking to Ben Gutteridge on a Brewin Dolphin podcast Williams said his current macro outlook is based on four main pillars.
“First, if you believe the market is right the Fed is only going to move in baby steps then we are looking at a further two years of negative real rates and accommodative monetary policy on top of the five we have had already,” Williams said.
“Secondly rates will peak out at much less than we have been used to in the past therefore it could continue to be a positive environment for growth assets even with tighter monetary policy,” he added.
“Next is that China has a big policy dashboard with many buttons it can still press; If only Europe had that,” Williams continued.
“Fourthly, even as the Fed tightens its doesn’t feel like a blanket emerging markets crisis, although there are pockets of vulnerability for sure such as countries with bid external debt. But for the most part external debt ratios are fairly low, exchange rate pegs have mostly gone and if all else fails these countries can print money of course,” Williams said. “We could see a pass the parcel of quantitative easing from the developed world to the developing.”
