17.09.2008 10:37:18

ING Investment Management: View on Lehman's Fall Out and impact on our asset allocation

Lehman’s Fall Out - What is our view?

Markets opened this morning lower again, catching up on the news. We believe that the authorities in the US have shown decisive action to deal with the crisis so far this year (for example the FED widened the collateral it accepts for loans to securities firms to include stocks). The current turmoil has not changed our overall view; remaining one where we expect continued weak global economic conditions and given that this is a consumer led ‘recession’, only a very gradual recovery. This means that the upside for equity markets will remain limited, while the volatility will remain very high. The recent events have only strengthened this opinion. Our risk focused active investment management approach will continue to help us in this environment.

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