Tilney Bestinvest chief investment officer Gareth Lewis has blamed the continuing lack of investment opportunities on quantitative easing.
He said the policy prevented the “creative destruction” which usually takes place during a period of recession.
Mr Lewis said QE meant there has been an abscence of a true credit cycle, with the destruction of excess capacity.
Speaking at a briefing this morning (29 June), he said: “There has not been this creative destruction and there are just not the investment opportunities out there.
“I don’t think this is secular stagnation, I think this is due to the legacy of QE.
“The jobs being created are low-skill, often temporary and poorly paid because this natural reinvestment cycle is simply not happening.”
Mr Lewis said the absence of QE in the US now means the country’s equities are struggling.
He said: “We had been quite overweight most bond markets at the end of last year but we have tapered that position quite significantly, particularly in high yield.”