FocusPoint
Market Outlook: Markets focus on political risk
Turbulent markets due to political risk
Greek debt problem will be remedied
We remain positive about equities
Higher premium for risky bonds
After a good start to the year, the mood on the financial markets changed in
mid-January. Although many companies presented better than expected
results over the fourth quarter, fears predominated about the consequences
of the enormous budget deficits of some euro zone countries. The main losers
here were riskier investments (equities, commodities). Government bonds
issued by ‘safe’ countries profited from the increased risk aversion.
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