2011 is a year of little return

Just as we feared, 2011 is proving unrewarding for most investors. Days of gloom and falling markets alternate with days of enthusiasm and love of risks.

Bulls and bears are locked in a battle. It is like watching a neverending arm wrestle, with first one side then the other getting closer to victory only to be dashed again. The bulls keep reminding us the world economy is still growing. The Western banks may be weak, but they seem now to be supported by governments and under pressure to be stronger by regulators. The East may be combatting inflation and raising rates, but it is still growing at a healthy pace and may not plunge off a monetary cliff anytime soon. Profits and dividends are advancing in most locations. Western inte...