The age of delusions is ending – but what will replace it?

For years, we have been living in an “age of delusion”, says Max King. The return to normality will be painful, but a dose of reality might be a very good thing for markets and economies.

London Stock Exchange
The UK stockmarket has outperformed all others this year
(Image credit: © Luke MacGregor/Bloomberg via Getty Images)

This millennium has seen two of the four biggest bear markets in global equities in the last 100 years. Surely it is too soon for another?

Yet a drawdown of more than 20% in the S&P 500 index in the year to date has led to dire warnings from market sages, pundits and the media that the bear market has much further to run.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.