Falcon Perspectives - March 2011
Falcon Perspectives give an insight into the investment decisions of our specialists.
FALCON PERSPECTIVES - MARCH 2011
Investment Review and Outlook
The events in Japan and the Middle East are weighing on equities. These uncertainties are unlikely to go away fast. However, we expect the international economic recovery to continue. Japan is too small in terms of share of global GDP to significantly impact global output and trade. However, the still relatively upbeat economic outlook could change if things around the nuclear power plant get completely out of control. Similarly, military escalation in Libya or continued civil unrest in a number of Arab countries could impact the global economy via higher oil prices.
Investors also worry about the near-end of extensive monetary support. The ECB has stated that it might raise interest rates as early as in April. The Fed’s QE2 program is coming to an end in June. By now, the major economies and the financial markets should be strong enough to withstand the upcoming end of the extraordinary expansive monetary policies. With regard to the financial markets, the factors, which have supported equities and commodities since the second half of 2010, are still in place..
Investment Review and Outlook