Outlook for Investment Markets
Investment markets have again been nervous, principally about the Eurozone's debt problems. Shares have struggled, 'safe haven' high-quality bonds have gained (though gold, previously a popular bolthole, has fallen in price), lower-quality fixed interest has been sold off, and markets in general have been volatile and vulnerable to sharp swings in sentiment. The path ahead for the Eurozone remains problematic, and diversification and insurance will continue to be necessary as protection against its risks. More positively, there have been signs that the United States economy has been performing better than expected, while the emerging markets are also doing well. It is possible that the current nervous markets have over-discounted prospects for 2012.
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