The year ahead

Credit Suisse''s chief economist and strategist discusses his outlook for the year ahead.

Looking ahead to 2005, our forecasts are that bond yields will rise modestly, taking the US 10-year Treasury to around 4.3% compared to some 4.1% at the time of writing and stay there till mid-year. Thereafter there is potential for yields weakening to sub-4% levels as growth in the US moderates.

For equities we see a significant risk of a marked fall of around 10% compared to the levels at the time of writing, around 1200...

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