Cazenove: Get the inflation debate wrong and you will be 'toast'

The raging debate around whether we are likely to have an onset of inflation or deflation will be the main driver of returns over the next five to 10 years, according to Cazenove Capital's multi-manager head Marcus Brookes.

Brookes, who runs Cazenove's £467 million Multi-Manager Diversity and a host of other funds, believes investors need to be more balanced than ever before, otherwise they could be wiped out if they happen to be on the wrong side of this debate.

He said: 'It is going to be the debate that defines the returns for the next three to five, or even 10 years.'

'If you get this one wrong - by putting it all on black, for example - you could be toast. So if you are on the wrong side of the debate you will lose 15% to 20% of your capital in a very short space of time, and let's remembers, if you lose capital it's gone!

In the video, Brookes also outlines why he is increasing the funds' weighting towards Jupiter's Philip Gibbs and Eclectica's Hugh Hendry in such a difficult environment.