Outlook 2012: Slim returns, fat tails and high correlation
Market comments by Frank Velling, Chief Strategist in
BankInvest, 14 December 2011
Asset allocation will continue to be challenging in the coming
year: Trend-growth in the Western world is muted. Furthermore, the
price behavior for risky asset is volatile and the return
distributions exhibit unusually fat tails. At the same time, the
risk of policy errors in an economically unsynchronized world, but
with high correlations between risky assets across sectors and
regions, means that there are few places to hide.
Read the market commentary and get the Strategy team's view on
the economic growth, the monetary policy, equities and bonds and
get an insight into the risk factors for 2012.