While reflecting on how many of 2014's "outrageous predictions" came true (and the still strong US equity markets), Saxobank CIO and Chief Economist Steen Jakobsen [4] warns 2015 will see "deeper and deeper market corrections." If we continue to apply medicine to keep the patient alive, instead of dealing with the disease Jakobsen ominously warns, 2015 will see increased volatility and mean-reversion, "think in terms of October 1987 or 9/11." Maintain a balanced portfolio, he suggests, the preservation of capital suggests you take all the gains you have made this year and put them into cash to wait for better opportunities. "We are investing in a paperless society where everyone in the world is becoming either a banker, a fund manager, or a hairdresser - it's all about services. A non-productive society reigns supreme in most developed countries."
Full interview below...
