Brexit Watch: Go defensive, hold cash, search value post storm - 7IM

The ‘new normal’ of ultra low/negative rates, record high stocks and bonds has surely caught most of us off guard. Moreover, the resilience in the stock market rally is baffling to many given the amount of risks that could be heading towards us.

Justin Urquhart-Stewart, Founder of 7IM feels uneasy while talking about the current state of the financial markets. He sees somewhat disturbing signs similar to the ones observed ahead of the Dot Com bubble.

While talking about FTSE100, he says this isn’t a bull market but appears like one due to sliding currency. This view is sure to cheer Austrians (economists) out there who often state that slide in currency (loss of purchasing power) is represented by rising stock markets as well. The current rally isn’t backed by strong fundamentals, he adds.

When quipped about the investing strategy one must follow, Stewart says it is ideal time to go defensive, hold cash and take position in value stocks post story. He cites Trump victory as one of the storm that could be waiting for us in the shadows. Stewart is joined by Tip TV's Nick Batsford.