Predictions for 2010

Welcome to the New Year edition of The Capital Advisor. Another year is now behind us (one that many are happy to put in the past) and a new decade lies before us. I’m particularly eager to see what the future may bring as those of us focused on the day-to-day management of corporate cash investments have, over the past 24 months, become all too familiar with the potential perils of our profession.

I recall a time, not too long ago, when treasurers approached the investment of corporate cash assets with somewhat less enthusiasm than they do today. For good reason, cash investments are now scrutinized like never before. Research on individual securities and funds is sought after and yield is a luxury that takes a back seat to any hint of risk in almost all cases.

As we look ahead to the future however, we can find reason for optimism. Governments have come together on an unprecedented scale to support global financial markets and avert what could have been a far worse world wide economic calamity; GDP growth has returned; and investors are expressing a resurgent confidence in the markets through their actions. While we most certainly recommend remaining vigilant, we do see these as positive signs of opportunity for cash investors on the horizon.

For this month’s Research Spotlight we’ve polished up the crystal ball and we’re looking at what treasurers may reasonably anticipate in 2010. Trends to watch such as potential interest rate hikes and a jump in bond yields may present some longer term advantages. And, while we’re not yet out of the woods, we hope the new decade will usher in a more fruitful economic environment for us all.

Happy New Year!

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Best Regards,

Ben Campbell
President & CEO