Last year was not an easy one for investing. Frequent market rotations meant that what was good one month, often looked poor the next. While this is part and parcel of investing, the momentum pushed stocks much higher and much lower than the fundamentals would suggest which made for a stomach-churning ride. It’s difficult to put the market volatility down to a few single reasons – both macro and micro factors impacted performance. Whatever it was, we do not see this as a fundamental shift. While we like the outlook for the equity market, we see another year of solid,but unspectacular returns – good enough to surprise the bears, but it probably not good enough to appease the bulls.
