"Downturns and bear markets are as inevitable as death and taxes, so I doubt that this time is any different. Over the last year or so we have already been reducing our funds’ equity weights as markets have risen. We will continue to reduce them over the next two years such that by the onset of the next bear market our funds are defensively positioned.”
Mr Elston said the current period of global economic expansion has lasted much longer than is typical, but that with interest rates generally at very low levels, the economic cycle has been elongated, and ensures that a downturn is not imminent.
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