Plenty of caution is needed as economy remains depressed

As we enter the second half of 2002, the global economy and financial markets remain turbulent and the outlook is as uncertain as ever. Against such a background, formulating an appropriate investment strategy is clearly not straightforward. The source of the turbulence is the persistent conflict between the deflationary forces unleashed by the collapse of the tech boom of the late 1990s and the reflationary forces from global policy stimulus. Investors are disillusioned by the endless reports of greed and corruption that existed during the boom years. They are waiting for profits to r...