Markets are sending confusing signals to investors. The risk-on trade has boosted equities and pushed money into emerging markets, but at the same time money has poured into safe haven assets like the yen and the Swiss franc.
“We would argue that the sun is about to fade on safe havens as investors begin to recognize that we are no longer in a period of crisis,” said Gregory Perdon, a senior investment director at Arbuthnot Latham & Co. said in an interview with CNBC on Thursday.
“QE (quantitative easing) has helped to distort many asset prices globally. One of the well-known side effects of QE is that certain prices can get distorted and this flies in the face of our laissez-faire capitalistic model,” he said.