How do you adapt your investment strategy to the changing world surrounding us? Although economic growth remains strong, it is likely to slow in 2006. Inflation, which has long been forgotten, is once again a concern in the United States, as Alan Greenspan has reminded us prior to his impending departure, with higher energy and raw materials prices being passed on more rapidly than elsewhere.
Will the new growth drivers – technological innovations, dynamic emerging countries, Japanese recovery – be strong enough to drive the rest of the world? Can the geopolitical fissures bring about major chaos in our countries and should they be taken into account in your asset allocations?