Why wouldn’t it be?
A question that many people have is – how long can the equity markets keep soaring, how long can house prices keep increasing and how long can demand for negative yielding government bonds continue?
The answer to all of the above is probably (but not necessarily) indefinitely. In many ways we are living in very interesting times. This time it is different, why wouldn’t it be?
The 10 largest asset managers in the world, a list that includes BlackRock, Vanguard, State Street, Fidelity, Allianz, UBS and JP Morgan Asset Management have some $32 trillion assets under management (at the end of 2017). The entire space of asset managers have around $65 trillion of assets under management.
Fund managers have over $3 trillion of new inflows a year, primarily down to private pensions (governments keep pushing it given the looming state pension crisis). These fund managers get paid as long as they invest the money. There lies the problem – they have to invest it. It isn’t as simple as it sounds. Continue reading “The problem Asset Managers have is that they have money that must be invested”