Equity movements in 2009 will be joined by sharp market rotations

At a time when moves in financial markets and in economic activity are changing so rapidly, forecast...

At a time when moves in financial markets and in economic activity are changing so rapidly, forecasting is even more hazardous. However, we can predict a number of things that will go up next year: the UK savings ratio, unemployment, government debt, gilt issuance, bankruptcies, the number of capital raisings and the cost of holidaying abroad. Equally, we can be fairly sure the following are going to be heading down: profit forecasts, house prices, interest rates, some dividends, Libor spreads (we hope) and, in all probability, investor appetite for equities. While we may be able to see...