Europe's dual-speed economy will bring more market volatility

ON ASSET ALLOCATION

Octopus' Lothar Mentel believes division in the EU and UK austerity measures will have a negative impact in 2011.

The end of the calendar year traditionally brings out the predictions from market commentators as to what the New Year will bring. Investors will be looking to position portfolios to address the themes to emerge in 2011. But we are already looking for a willingness among market participants to look beyond 2011 and into 2012. The confidence to forecast is critical for the fortunes of capital markets and will mark an important turning point. While the market lacks the confidence to make longer-term predictions, it will remain vulnerable to short-term shocks and susceptible to swings in sen...