Rock still cautious despite pre-crisis volatility levels

ASSET ALLOCATION

From an economic perspective there are many questions still unanswered...

What is apparent is the global economy has recovered from a sharp shock, but how sustainably strong future growth will be is still unclear. The normal shape of past recoveries has been an initial bounce followed by a period of slower growth, and we see no reason for it to be different this time. In the US, the corporate outlook is becoming more robust – a clear reflection of how a flexible economy can respond to a downturn – “the SAP recession”.   Questions still remain over the state of the housing market and the size of the government deficit, and the two obvious policy tools available...