Monson: What will drive markets in 2013?

Guy Monson, Chief investment officer and managing partner at Sarasin & Partners, reveals the key factors that he expects to drive markets in 2013.

As we progress into 2013, Messrs Bernanke and Draghi can look back on last year with some satisfaction; a recovery in the US housing market, a dramatic narrowing of Italian and Spanish bond yields, and rising asset prices suggest their policy is gaining traction. Rather as they must have hoped, investor risk appetite is returning and investment flows are moving back to global equities as the search for yield continues. This is no mean achievement given the uncertainty over the future of the euro, and the grim austerity agenda dominating the European investment outlook just a few months a...