Investec's Saunders: My market outlook

While recent data points to a moderation in the pace of global recovery, we expect this to be temporary. In addition, though commodity prices have retreated, we view the fall as less significant than the reduction in the risk of a further spike, on balance. Subsequently, the moderation in inflation concerns has led to a fall in bond yields and also reduces the chances of interest rate increases, despite the urgings on the UK and the US by the OECD. The US has collectively spurned any attempt to control its fiscal deficit and we believe this will be a problem in a few years. For now, t...