Storm ahead? Here’s how to prepare for a financial crisis

Every 10 years or so a financial crisis hits global markets – and it’s 10 years since the last one. Last week the IMF warned that not only are the storm clouds of the next global financial crisis gathering, but also that the world financial system is unprepared for another downturn. Will your pension be wrecked? The value of your house plummet? Will your industry be hit by a wave of redundancies? The bad news is that even the big investment houses, which traditionally talk up markets in the hope that you will invest, are pessimistic about 2019. Edward Bonham Carter, vice-chairman of Jupiter Asset Management (and yes, he has a famous sister), this week warned that “the party is coming to an end”. Over the last decade central banks have fuelled a boom in share values and property prices by slashing interest rates and pumping the financial system with virtually free money, called “quantitative easing”. Now, debt levels are worse than ever, just as the US-China trade war continues, and the Brexit saga staggers on. “Remove the crutches that have supported global growth for a decade, throw in a trade war between the world’s two largest economies, add a… Read full this story

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