HSBC analysts have predicted the issues they feel will be at the top of investment agendas. The risks by climate change features.
Climate change – welcome back climate risk. President Obama has highlighted climate change as one of his priorities of his second term, while the EU tries to create scarcity in the carbon market. ‘Strategically, we expect the long-term risks facing fossil fuel assets to become more widely understood in the market. Our research on coal suggest that these risks are material, but capital markets have yet to price them in,’ the analysts said.
Other predictions include:
- Economics – Forget the West, focus on China
- Fixed income – Modest returns in 2013
- Foreign exchange – Weaker Sterling, stronger Yen
- Global equities – Another choppy year
- Asset allocation – Go for a ‘barbell strategy’
- Emerging markets – The only game in town!
- Precious metals – Gold for the win
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