Skandia cautiously optimistic on global outlook

Continuing instability in eurozone bond markets, coupled with a lack of improvement in US consumption data, has caused markets worldwide to remain volatile during the past few months.

The Chicago Board Options Exchange Volatility Index Vix, which reflects investor estimates of future volatility and is also referred to as the fear index has traded up 35% since August.

“I am not sure if it is a good or a bad time to be coming out here because there are so many uncertainties, particularly on the political front, in Europe,” said Rupert Watson, head of the asset allocation team at Skandia Investment Group, a UK-based investment...