The Weekly Brief (4 January 2016)Contributor Global Markets Insights Strategy Team
It’s been another good year for Japanese and European equities, albeit with some sizeable bumps along the way.
The US has struggled to make much progress against the headwinds of dollar strength and the collapse in energy earnings. In the UK, markets have had another lacklustre year, with the high exposure to commodity sectors weighing on the FTSE 100. Commodities were the worst performing asset class for the 5th consecutive year, which also hurt emerging markets. Government bond returns were unexciting compared with last year. We expect another year of weak government bond returns in 2016 with more attractive opportunities in high yield bonds. We expect low but positive equity returns with the greatest opportunity in Europe.
This year's winners and losers
Market returns for 2015*
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The value of investments and the income from them can fall as well as rise and investors may not get back the full amount invested. Past performance is not a guide to the future.