Risk Aversion vs. Risk Taking: What’s in Store for 2010?

With 2009 coming to a close, I’d like to take a look back at the role that the big-picture environment has played in determining how currencies, and all financial markets, performed. And how that might change, or stay the same, in 2010. For 2009, it was all about risk appetite. It was a tug-of-war between risk aversion and risk taking. This dictated what was happening with global currencies, stocks, bonds, commodities … all financial markets. And for most of the year that battle was clearly won by an increasing global appetite for risk. Here’s how it played out … After the global…