Sonja Laud, Head of Equities, Fidelity International, said to Udayan Mukherjee, that volatility is here to stay.
She said the fundamental backdrop in 2017 was very strong and there was strong synchronized global growth along with benign inflation.
"At the start of 2018, as well the fundamental backdrop was strong, but then there were fears that if inflation would remain benign and that fear came true by the end of January," Laud said.
When asked if we were at a point, when we should start fretting about recessionary conditions because in the past, the inverted nature of the yield curve has been a telltale sign of some kind of recessionary condition.
She agreed that this has been a very strong sign in the past but whether the signal is as strong now is a bit questionable because we are still experiencing very strong influence of a rather strong price insensitive buyer in form of central banks.