Excellent backdrop for bonds as global growth returns in fresh market

As an astounding year nears its end, it is hard to recall the true despair that existed in almost all markets other than government bonds one year ago.

However, positioning for the immediate future was arguably easier then as there is more debate now as to what the market drivers will be and where we can generate future returns as we look into 2010. We have had an unprecedented amount of global stimulus to support the ailing world economy and to provide much-needed liquidity, the absence of which initiated the crisis. The support injected into haemorrhaging global banks, which has seen the recapitalisation of balance sheets, and the effort to reignite consumption on a global basis, has been staggering. The uncertainty now is what the fu...