Investors should expectreasonable growth

After several years of cautious investment activity, the coming 12 months should prove to be better for those investors willing to take more risks

Equity markets have rallied in the final quarter of 2002, while bond markets have sold off. Investors seem to be putting behind them all the shocks and turmoil of the past 12 months and are beginning to look ahead more optimistically towards 2003 and 2004. There are many hurdles still to negotiate but, on balance, it appears sensible for investors to begin searching for ways to take on board more risk. Last year was difficult for all investors: private retail, insurance companies and pension funds. The number of hedge funds closing their doors has been notable, reacting to the high lev...