Tuesday, March 6, 2012

Look how risk changed


If 2011 was the year of the Treasury bond, the world has changed radically in 2012. The number one gainer has been Italian bonds. Emerging market equities are back and commodities are in play. The yen, a place of safety is now out of favor as investors want to hold risk. Eliminate the banking problems in the EU and investors will reach for yield and return to offset the implied inflation targets.

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