More risk on/risk off in 2013?
Although 2012 was a year in which major catastrophes were avoided, it remained a year of “risk on/risk off” trading as investors continuously reacted to developments in europe early in the year and political trends in the us as the year drew to a close. The chart above shows that while stocks rose over the course of 2012 and fi xed income rates fell, it was hardly a smooth ride. An early-year rally bled into mid-year fear-induced risk aversion that ultimately morphed into mixed performance. Blackrock said in its What’s next in 2013: 12 critical answers for the year ahead report: “in the near term, until we see more clarity on the united states’ budget problems, we expect markets will remain volatile. However, with several of 2012’s risks assuaged as we enter 2013, investors could see a more positive trend for the stock market and risk assets in general.”
Comments