Capital Markets Outlook Whitepaper Winter 1Q12
Volatility Trumps Returns
January 20, 2012
We expect the global economy to continue growing in 2012, despite concerns about fiscal challenges and weakness in Europe. The US economy is showing signs of strengthening, surprising many forecasters. With volatile markets swamping fundamentals, it seems sensible to consider underweighting stocks versus their strategic targets. However, active managers can identify a number of opportunities while investors wait for a return to normalcy.