ok does anyone have picks for next years hot money flow & sectoral rotation ?
My pick :
US equities, with a resumption to higher peaks, whoa baby ! how's that for a contrarian opinion.
US is behind on the realestate boom, whilst this is happening puts a floor on consumption and market via wealth effect. Also exchange rate effeects will mean growth may surprise on the upside next year. When real estate tops out last move is people pumping sale of IV properties into equity market for the TOP at last (but maybe not for a couple a years and ? until a new jawdropping peak on the S&P/Dow).
Other candidates in australia :
- industrial property - too small a sector to absorb enough flow.
- emerging markets/asia/resources - ran hard last year, may not do so well if US consumption picks up AND USD continues to tank.
- bonds - now this would be a contrarian bit of genious or plain stupid.