This note provides a review of the economic and investment scene in 2009 and examines the outlook for 2010.
The key points are as follows:
– 2009 has been a year of recovery. First in share markets and then in global economic activity. Whilst unlisted assets, such as property, have remained under pressure, they always lag and now look to be bottoming. Patient investors have seen some recovery in their wealth after the losses of 2008.
– 2010 is likely to see the economic recovery continue and become self sustaining. This will underpin gains in most growth-oriented investments.
– However, with uncertainties about the strength of the recovery lingering and key central banks moving towards monetary tightening in the year ahead, share markets will be more volatile and gains more constrained than has been the case since March.