26-01-2011, 08:49 PM
1st half Market Outlook
Looking ahead, 2011 may turn out to be an even better year. Investors have turned more optimistic about the economic and earnings outlooks for this year. Most managers are more positive on equities compared to bond, and they are bullish on bourses in Asia and Emerging market. They are also sanguine on the commodity sector which should benefit from the robust growth in Emerging economies like China and India.
However, looking back over the past 12 months, we know that it is not wise to throw caution to the wind. Investors should not let their guard down altogether and they must be ready for volatility and even sharp pullbacks in the markets this year as headwinds, like the European debt crisis continues to loom on the horizon and will resurface from time to time.
Nevertheless as we saw last year, volatility and pullbacks can also present opportunities for those with a stronger risk appetite and a medium term horizon.
Looking ahead, 2011 may turn out to be an even better year. Investors have turned more optimistic about the economic and earnings outlooks for this year. Most managers are more positive on equities compared to bond, and they are bullish on bourses in Asia and Emerging market. They are also sanguine on the commodity sector which should benefit from the robust growth in Emerging economies like China and India.
However, looking back over the past 12 months, we know that it is not wise to throw caution to the wind. Investors should not let their guard down altogether and they must be ready for volatility and even sharp pullbacks in the markets this year as headwinds, like the European debt crisis continues to loom on the horizon and will resurface from time to time.
Nevertheless as we saw last year, volatility and pullbacks can also present opportunities for those with a stronger risk appetite and a medium term horizon.