An extract of the April 2010 edition of Investment Strategy
Riding a strong tailwind…
Risky assets continued to perform well over the past few weeks. We believe the current backdrop for financial markets will continue to be favourable for risk appetite over the near term.
… while gradually reducing sail
Yet we believe this “idyllic” situation is artificial in some ways and cannot last long. To begin with, our macroeconomic scenario continues to foresee structural deleveraging in the developed economies. After the current cyclical boom, particularly in their manufacturing sectors, these economies may start running out of fuel in the second half of the year and see their growth rates slump back down.
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