Jakobsen: We’re in an abnormal market

Steen Jakobsen, Chief Economist & CIO at Saxo Bank sees the attributes of the asset classes changing. In the past, we looked to fixed interest for yield and stability, and equity for risk. Now, equity is for yield, and fixed interest is the safe haven. “We really are in an abnormal marketplace.” He expects both equities and fixed interest to underperform in the next 2 to 3 years. “You want tangible assets. You want businesses with good management. We will gravitate towards the sectors that have been underperforming such as emerging markets and mining.” In this video, he explains why the debt burden in China might not be a problem.