inPerspective

The final quarter of 2011 provided a tumultuous end to an extraordinary year, but little has changed to alter our longer-term perspective on financial markets. We discussed this perspective and a number of our related themes at our annual investment conference in November, and we focus on two particular areas in this edition: debt, and the higher cost of energy.

In the first article, we look at the features of the current debt crisis. We ask what deleveraging entails and discuss how we believe investors should respond to it.

In the second article, we assess the investment benefits and pitfalls associated with a world in which the cost of energy continues to creep up.

Also in this edition, we interview Lord Lamont, former Chancellor of the Exchequer, about the current credit crisis and its implications.

Separately, we have recently published a paper, A perspective on returns, in which we explore the transition to a world with less debt, examine how concepts of 'risk' have evolved and explain how we think investors should meet the challenges they face. The paper is available at www.newton.co.uk/perspective-institutional

Finally, in December we announced some enhancements to our Client zone, which provides secure online access to portfolio information. We encourage clients to explore the Client zone, which can be accessed from the link on the top right-hand side of this page. If you require log-in details, please speak to your account manager.

We hope you enjoy this edition of inPerspective.