David Bulteel

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From Fund Selection 01 February 2007

By PWM Editor

“Last year produced surprisingly strong growth, with the stimulus from industrialisation in China and India outweighing higher oil prices and interest rates. The latter should plateau in most regions in 2007, reducing the headwind for equities. At current yields, bond returns seem likely to match cash in 2007. Investors should expect further outbreaks of volatility, as high leverage in parts of the financial sector makes it liable to extreme reactions to small changes in investor expectations.”

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David Bulteel

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