1) Emerging Market Currencies
2) Oil
3) Commodities
4) Gold
5) Emerging Market Equities
“Four economic themes underlie our investment view for 2011: (1) Solid if unspectacular global growth, with cyclical lift reasserting itself in developed markets against structural headwinds; early-cycle DM and mid-cycle EM have different problems and policies – a dynamic to watch. (2) Global rebalancing is progressing between EM and DM and is reinforcing the recovery, but the rising risk of inflation in EM could disrupt this balance. (3) The sovereign debt crisis has accelerated, but risks may be less systemic as Europe muddles through; the key is a credible holistic plan to stem contagion soon. And (4) the politicization of economic decisions; with politics affecting decisions on a range of issues the risk of policy error is high.”
DYODD, dudettes and dudes.