Outlook for Investment Markets
Sharemarkets have recovered from their November weakness as investors have become less concerned about the US 'fiscal cliff', the Eurozone's debt problems, and global growth. The risks have diminished rather than vanished, but the prospects are for a better 2013, which should benefit growth assets. The prospect of lower US interest rates until 2015 has triggered a surge of interest in bagging the income yields still available, and there's now little value left in some fixed interest and property markets. The important question locally is the scale and timing of the pick-up in the economy: it has been slower than expected to arrive, but looks likely for 2013 and 2014, supporting local growth assets.
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