Redwood: 2011? Our necks are on the block

REDWOOD'S 2011 OUTLOOK

It is that time when I have to come off the fence about next year. Not that I have been on it.

Investment managers always have a view of what will happen next, whether they can formulate it in writing or not – it is the portfolio they build that tells you what they think. Our necks are on the block, rather than firmly and coyly tucked in. We said 2010 would produce modest real returns from main assets. We said a balanced portfolio was probably the best and most sensible bet. That worked out quite well. Next year looks tougher. The gap between the bulls and the bears is huge. The bulls say 2011 will be another year of recovery. They expect the West to keep interest rates low, to...