The environment will be challenging for most asset classes in 2010. Economic growth is set to slow and unconventional policy stimulus is being slowly withdrawn. Valuations are looking stretched in many cases after last year’s spectacular rally, but are not yet in bubble territory. A correction therefore seems more likely than another crash. The major beneficiaries of the reduction in risk appetite are likely to be the dollar and government bonds, once inflation starts to slow again.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.