Report from financial markets from December 2009

15.1.2010
The December development confirmed our expectation that the growing trend on the stock markets, as well as the gradual reduction of risk surcharges, will continue in the following months. The reason is the continuing overpressure of liquidity stemming from the extremely loosened monetary policy of the main central banks which try to support a slight revival by the massive pumping of the money in the economy. The macroeconomic data, in particular the very low inflation without any signs of any significant action, should at the same time keep the yields of bonds on the relatively low levels. Nevertheless, we see a growing risk that the deteriorating fiscal positions of the states struck by the recession and the deepening deficits of the state budgets will lead to higher emission activity and growth of real interest yields. With regard to the fragility of the revival the increased volatility on the markets can be expected. The portfolio managers of ING evaluate the macroeconomic development and the situation on the financial markets in the Czech Republic and Slovak Republic in December 2009.

21.12.2009
In late 2008 and at the start of 2009 no financial market escaped dramatic losses, because investors were reducing risks. In the course of 2009 markets started to diverge again. We expect this to continue. Divergence will colour the themes, on which in our opinion investors will focus in 2010.

Report from financial markets from November 2009

11.12.2009
The November development confirmed our expectation that the growing trend on the stock markets as well as the gradual decreasing of risk premiums will continue in the following months. The reason is the continuing overpressure of liquidity which stems from the extremely loosened policy of the main central banks which are trying to support the fragile revival by masively pumping money into the economy. The macroeconomic data, in particular the very low inflation without any signs of rising, should at the same time keep the yields from bonds on relatively low levels. With regard to the fragility of the revival the increased volatility on the markets can be expected.
The portfolio managers of ING evaluate the macroeconomic development and the situation on the financial markets in the Czech Republic and Slovak Republic in November 2009.

Long-term outlook 2008 - 2018

20.10.2009
For the next ten years (end 2008-2018) corporate profits will lag far behind the growth seen in 2003-2007 (about 20% per year). Equities should show a better average return than bonds or savings products, despite structurally lower economic growth. The right regional allocation seems to be getting more important.