Investment comment

As a year of revolutions and riots drew to a close, scientists were reported to have discovered new Earth-like planets, hundreds of light years away. Investors, however, found only repeated challenges closer to home. The lengthening roll call of deceased despots - to Osama Bin Laden's name were added those of Muammar Gaddafi and Kim Jong-il towards the end of the year - may, superficially, have appeared to make the world a safer place, but financial markets remained capricious and volatile. Many of the world's major financial markets posted gains over the fourth quarter, but these gains belied large fluctuations in asset prices during the closing months of the year.