Investors worried bonds and equities have become overvalued

London

IT's that time of year again when investors, business people and students are overwhelmed with a surfeit of predictions.

The event of New Year, however, is just a ritualistic fun date in the calendar and predictions for the following twelve months have been invariably wrong. As has happened in previous years, numerous forecasts of economists, investment bankers and fund managers on TV channels, radio and newspapers are pronounced with great certitude. The mood tends to be bullish at the beginning of the year and at Davos in February. Chief executives spin a hopeful, positive story and fund managers, dealers and other financial experts talk their book. On the other hand, during market depressions such as late 2008 and early 2009, the majority of pundits have been pessimistic and at best cautious.