Low-return expectations will require investors to pay attention to details
In 2012, we anticipate another volatile year. Corporate earnings are set to slow, yet modest profit growth will likely balance the scales on the positive side. Overseas, a European recession seems inevitable, yet we believe Europe’s leaders will act to prevent financial collapse. Regional diversification will need to be firmly in place, as the economic center of gravity continues to shift eastward because of China and emerging markets. As traditional investments remain flat, alternatives will matter more than ever.
Making gains this year will require an active, global, multi-strategy approach. Identifying outperforming managers in every sector and region will count more than ever. In a world of increased volatility and lower returns, a dynamic approach to investing to take advantage of opportunities will increasingly become the norm for successful investors. Every basis point earned in a 2012 portfolio will need to be well-protected through rigorous, efficient trading and implementation actions. While growth is possible this year, it won’t come easy.
Read the full report: 2012-annual-global-outlook