Investors wait with bated breath for Fed's next move

The most important question for global asset allocation in the coming months is timing and the extent of a US consumer slowdown. Investors are now playing a waiting game, cautiously eyeing the steady trickle of economic data from the US. Until the Federal Reserve has made it unambiguously clear the next move in interest rates is down, markets will most likely remain hamstrung by uncertainty. The effect of this is cash levels are building up - by some estimates they are now at record levels among institutional investors. When investors are certain there will be a soft landing, equities...