HSBC analysts say that short-term sentiment has driven markets at the expense of long term investment thinking during a markedly volatile 2011. But what's been created out of this situation is a potentially attractive set of investment opportunities for 2012 for those with a longer-term perspective.
In its global outlook for the new year, HSBC GAM argues that frequent rotations in sentiment in markets reflect the fact that officials have been applying a ‘sticking plaster' approach to addressing fundamental problems - acting only when faced with severe market pressure, and only then delivering just enough to stem the tide in the short run. Investors are, therefore, presently focused on whether European policymakers will be able to deliver a comprehensive long term solution to deal with the Eurozone crisis. Given the risks to the outlook, explains Alec Letchfield, Chief Investment Of...
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