Eurozone Volatility (Merrill Lynch webcast)

An online webcast features a panel of experts with their opinions on the global forces affecting the market and the economic outlook, in light of the Eurozone volatility. The webcast can be viewed here.

Thus the theme: 'Eurozone Volatility: Will Global Troubles Stall the Recovery?'

The panel of four includes Mohamed El-Erian, CEO & Co-Chief Investment Officer of PIMCO, the award winning fixed income investment fund manager.

The programme begins with an examination of the investment 'noise' in the market. Headwinds confronting the global economic recovery are discussed, including the reduced role of the US consumer as savings rate rises to counter debt. The concluding remarks centre on increased volatiliy in a slow improving market, and how keeping 'dry powder' (spare cash) allows opportunites not to be missed amidst bouts of markets oversold. This resonates with the general asset allocation of 50-50 where about 10% of the bond allocation is parked in liquid money market funds/cash which allows re-allocation into 'bargains'. Then the 60-40 asset allocation emerges and remains so with periodic rebalancing for the general investor.

For a reading of the transcript, please view here.