It will be just as important for investors to be patient in 2010 as it was in 2009 according to Russell Investments, as the year will be dominated by a series of macro themes causing spikes in asset return volatility.
Russell believes 2010 will be a year of transition with valuations largely returned to normal levels investors should target broad diversification.
In its top 10 tips for 2010 Russell outlines that the recovery will not be an “alphabet” shape – such as the W or V – but will be more like the square root sign.
In Russell’s 10 key global investment themes for this year, patience and prudence are‚ the winning attributes because the current recovery will take longer than normal to gain traction.
Other top 10 themes include: low Fed funds rate until 2011, tight credit, fiscal stimulus, Asian ascendancy, and a perplexing market for gold.