Investors can take a deep breath as they reflect on 12 months in which their worst fears were never quite realised. But while there is tangible evidence of a recovery, confidence among investors remains fragile.
Markets ended the year on a brighter note than many would dared to have suggested nine months ago. The FTSE, which began 2009 at 4,561, reached its lowest point in six years in March, falling to 3,512, with banking shares taking a hammering. It has since recovered, but the mood among Scottish investors remains uncertain at best.
But what do the experts think lies in store for investors this year? We asked some of Scotland's leading investment pundits for their predictions.
.... Alan Steel, Chairman of Alan Steel Asset Management
Last year the consensus was gloomy. Now, not only is it still gloomy, but we also hear of double dips, inflation worries and a jobless recovery, among other concerns. But if you look behind the headlines you will find good reason to believe that the surprises will continue. What are they?
The US is emerging stronger than anyone believes and the dollar is not going to sink into the hole that many people expected.
Another surprise should be the continuing bull market in developing countries including India and China, not to mention the Asian tiger economies and Latin America. Economic research points to secular bull markets there, suggesting years of outperformance. Expect stock market corrections early in the year, but that should represent another good buying opportunity for optimists. The final surprise will probably be bad news for sovereign bond and deposit holders. ....
Quote courtesy of The Scotsman, 2 January 2010.
