Investors are advised to avoid retreating into ‘safe haven assets’ and instead focus on diversification and risk assets, says Kevin Gardiner, head of global strategy at Barclays Wealth.
Gardiner recommends investors take overweight positions in US and Europe ex-UK equities, as he says “the euro is not going to break up” and “the world is probably not going to follow Europe into recession”.
Three main, broader themes are proposed by Gardiner for 2012, including; high-yielding equities; “global quality” companies; and Asian exposure.
Gardiner says investors should take underweight positions in the the UK and emerging market equities sectors.
He adds that the FTSE 100 is likely to see progress limited by concerns over austerity implementations, while emerging markets are predicted to continue to underperform developed markets.
While 2012 is predicted to be a more favourable year for equities than 2011, Gardiner warns of a continuation of volatile returns.
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