Investment - Articles - Schroders Replay: Update on the current market turmoil

 Please find below key highlights of the conference, hosted by Schroders’ Global Head of Marketing, James Cardew, and featuring Chief Investment Officer, Alan Brown, and European Economist, Azad Zangana. Alan and Azad provide an interesting update on the current turbulent market environment and the short to medium-term outlook.
 
 - Greece – If the political will is firm, there seems to be no reason that Greece could not remain within the Eurozone, however ten years is a long time and political change could easily occur within that time.

 
 - Eurozone – There is concern that Greece could be the first in a number of Eurozone ‘dominos’, however the situations in the various countries threatened by contagion differ significantly from that in Greece. It is important that these problems are confined to the smaller European economies, as a spread to the larger economies would be cause for concern.

 
 - Emerging Markets – A synchronised financial crisis undoubtedly has an effect upon emerging markets as well as the developed world, however, while a return to the pre-recession growth levels may take some time in the developed world, this is not necessarily the case for emerging markets.

 
 - Outlook – Within ten years we will have recovered from the crisis and returned to business as usual; however we may see changes to membership, of the Eurozone. Meanwhile, we predict ten years of modest growth in the west, while emerging markets may well grow rapidly, leading to an equalisation of power within these markets.