Outlook for Investment Markets
The past month has been a wild ride. Global shares were sold off sharply, and high-quality bonds and gold snapped up by investors nervous about slower global growth and Eurozone debt. While volatility may well persist into 2012, at current asset price levels the panic looks to be overdone, with bond yields at unsustainably low levels and share prices discounting a weaker world economy than seems likely considering the strong growth of the emerging economies. The Australian economy remains in good shape by international standards.
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