The latest bout of market volatility masks a recovery in economic growth that will be driven by increased money supply, according to Yarra Capital Management head of strategy Tim Toohey.

The former chief economist for Goldman Sachs in Australia argues that an analysis of the link between central banks’ monetary easing and economic growth points to an upbeat outlook for shares and other risk assets.

“We’re going to see another 12 to 18 months of an upswing here,” he said.

“The financial markets have been obsessing about 2020 being the year of the global recession but that veil’s been lifted.”

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