|Influencing economic and political factors|
|Equities||Expecting poor gains till after 2014 on belated US government
austerity and in anticipation of Fed tightening.
|Govt Bonds||Fed loose money and government austerity maintains support,
until targeted inflation and employment levels in 2014.
|Equities||By mid 2013, the new credible central banker’s monetary and
regulatory discipline and anemic economic growth bode ill.
|Govt Bonds||Following US treasury lead.|
|Currency||Slow growth and belated austerity maintain pressure.|
|Equities||ECB commitment to assist troubled nations allows small switch
in from better performers.
|Govt Bonds||Continued recession and ECB assistance with low interest rates
and credit lines give continued support for all nations.
|Currency||Continued limited recovery on risk-on trades but poor growth
and continued low interest rates will eventually weigh heavy.
|Equities||Manufactured currency depreciation now provides fuel.|
|Govt Bonds||Low inflation and interest rates maintain support.|
|Currency||Commitment to an inflationary target with low interest rates
allows overvalued currency to depreciate.
|Equities||After strong recover since 2008 look to take money off the
|Commodities||Loose money supports gold, others to fair worse.|
- Russian political interference in its return to
- Chinese growing military capabilities
- Necessary EU & US regulation of modern
financial institutions and products
- Mid-East political uncertainty.