Andrew Wilson: Gilts Still Seen as Safe Haven Asset

The video discusses the current economic conditions, focusing on asset pricing and the role of gilts as safe haven assets. It explores the potential for economic downturns and the implications for asset repricing, particularly in equities and UK banks. The discussion also covers the bond market's response to the Bank of England's potential rate cuts and the anticipated trajectory of UK growth over the next 12 to 24 months.

What is the main focus of the discussion on asset pricing in the current economic environment?

• The influence of political events on asset pricing

• The impact of climate change on asset pricing

• Assets being priced to perfection and the role of cash

• The role of technology in asset pricing

Why are gilts considered a safe haven asset in the UK?

• Because they are perceived as stable during economic uncertainty

• Due to their historical performance

• Because they are backed by gold

• Because they offer high returns

What is the expected timeline for gaining clarity on moving into riskier assets?

• Within the next month

• In the next 5 years

• In the next 18 months to two years

• Within the next 6 months

How are UK banks perceived in terms of equity pricing?

• Cheap on a dollar basis

• Expensive in both dollar and sterling terms

• Fairly priced in sterling terms

• Overvalued in dollar terms

What is the anticipated action by the Bank of England in response to the UK economy softening?

• Increase interest rates

• Implement quantitative easing

• Move towards rate cuts

• Introduce new taxes