The end of long term investing in equities?

Gerry Fowler, global head of equity and derivatives strategy at BNP Paribas, thinks long term benchmark investing is going to struggle for the rest of the decade. Investors should no longer look for equities at fair value, which relied on the exuberant investor, and instead should seek discounts of 20-30 per cent to fair value. He recommends looking for opportunities in relative value and is focusing on a call option relative value strategy based on emerging markets and the S&P 500 to mitigate against significant downside risk.