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At the beginning of 2011, consensus investor views bear a remarkable resemblance to those at the start of 2010: equities are the place to be and government bonds will yield an unexciting return at best. Last year the consensus proved right, even if most investors had to wait till the last quarter of the year to see their expectations fulfilled. It did not pay to be a contrarian in 2010. Will that be different in 2011? At the moment the investment skies appear blue. Economic growth and corporate earnings in the developed world are surprising on the upside. Inflation is only an issue in some fast growing emerging markets and appears to be countered adequately by local policy makers. Their measures to slow growth may temporarily reduce the attractiveness of some emerging markets for equity...
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