U.S. stocks ended modestly higher Friday, wounding up a week of solid gains as investors braced for the third-quarter financial results.  Sentiments also got a boost after Federal Reserve Chairman Ben Bernanke indicated that the central bank will be ready to tighten monetary policy once the economy improves.  Bernanke’s tightening comments helped the dollar regain some lost ground.  Bond prices fell sharply. 

After a two-week selloff, fueled in part by concerns that the seven-month old rally had gotten ahead of any economic recovery, stocks got a boost last week following better-than-estimated economic numbers and Alcoa’s (NYSE:AA) surprise quarterly profit.  That helped investors set aside worries and extend the rally.  Meanwhile, White House economic adviser Lawrence Summers reiterated the Obama administration’s commitment to a strong dollar, citing recent comments by U.S. Treasury Secretary Timothy Geithner.

This morning’s stock futures show markets are headed for a higher opening as the busy

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Reuters reports that Russia is anxious to see that economic reforms promised by the G20 are realised.  The Kremlin's top economic adviser, Arkady Dvorkovich, has suggested that Russia should begin to 'interlink the ruble' with energy resources so as to render the Russian currency 'essential' for many countries.  Dvorkovich has also suggested a cut in VAT to stimulate the economy.  Also from Reuters, lenders have apparently been put off by two major debt cases in Russia, one of which being the mammoth debt restructuring efforts for Oleg Deripaska's Rusal.  Russia will reportedly modify its investment laws to render investing in specific target sectors easier.  Prosecutor General Yury Chaika has said that the office will prosecute both shareholders and executives in companies which fall behind in wage payments, which could challenge the legal standing of the limited ...

This post is a guest contribution by Niels Jensen*, chief executive partner of London-based Absolute Return Partners.

It is not universally appreciated, but the last 25-30 years have, in general, been staggeringly good to most investors. Technology induced productivity enhancements combined with favourable demographic trends, minimal government involvement, accommodating labour unions and the globalisation of international trade have all contributed to a benign inflation environment and strong economic growth, leading to arguably the biggest bull market of all times in both bonds and equities.

So much for the good news. The long lasting tail winds have finally turned around, and we now face, and will most likely continue to face, head winds for years to come. The list is long, but some of the most important factors contributing to this change include:

The demise of the Anglo-Saxon consumer driven growth model:

The Anglo-Saxon consumer is exhausted; he

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