Outlook for Investment Markets
It's been another very eventful month, with 'safe haven' assets (government bonds, gold, the yen, the Swiss franc) in high demand, and other assets (equities, lower-quality bonds, major industrial commodities) all sold off. This will remain the case as long as investors' concerns remain focused on the Eurozone debt crisis and lower-than-expected economic growth in the US and Europe. That said, several asset classes have now been pushed to extremes of 'worst case' valuation, and any burst of better news could see a sharp reversal of these recent trends. New Zealand and Australia's prospects continue to look relatively attractive when set against the issues confronting the major developed economies.
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