Over 2008, even the Federal Reserve had cut- and- monitor rate positioning. Now, the reverse could equally apply to meter out distortion risk. Politically, 2010 going forward appears globally momentous. The European gap between Greece and Germany appears both about bearing funding costs and bridging the penchant in the north for sacrifice now for economic benefit later versus that in the south for enjoying now and letting the future take care of itself. In the United States, the passage of healthcare and imminence of financial reform have to be seen in the context of November elections and perceptions of America to come. Not least for China and India, in Asia the domestic political issue is that of inflation. We expect that range bound markets to prevail into mid year. In equity sectors, restructuring accomplished favors large cap energy as well as, alongside growth, information technology. We see U.S. healthcare reform as accentuating the advantages of restructuring as our long favored theme for healthcare.
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