Why your best investment strategy is to do not very much at all

Stocks will be worth buying eventually, says CLSA analyst and bear market expert Russell Napier. But we face a nasty deflationary shock first.

Stocks will be worth buying eventually, says CLSA analyst and bear market expert Russell Napier. But we face a nasty deflationary shock first.

For all its problems and excesses, the credit-boom era was still better than the current nightmare of having asset prices effectively set by governments. According to economic theory, the power of governments to do this should be limited by the unwillingness of lenders to finance anything so unproductive. The price of government credit (what it costs the government to borrow) should be the one powerful truth that prevents the manufacture of all the other lies of price.

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Russell Napier is the author of Anatomy of the Bear, the definitive guide to how real bear markets work. He is also a consultant to Asia-based stockbroker CLSA, where he writes about the issues facing the global markets; and he is the creator of "A Practical History of Financial Markets" – a particularly brilliant course on offer at Edinburgh Business School.