The frightening headlines that warn of the European Union’s break-up, the collapse of major financial institutions and fiscal cliffs have either dulled our senses or have lost their relative importance over the last year. This lack of “macro focus” and “correlated returns” has been giving way to a more normal level of market volatility which I described in detail in my last quarterly “Nothing to Worry About”.

Consequently, the market appears to be a safer place to invest and valuations are rising.