Global Economy Outlook: Despite a low growth envi-ronment across the board in 2012, markets favoured risky assets, such as equities and high yield fixed income over the safe havens such as US Treasuries and German Bunds. Radical monetary policies proved to weigh more than fundamentals. The Federal Reserve decided to pur-sue Quantitative Easing (QE3) to support the economy by purchasing large amounts of Mortgage Backed securi-ties. The European Central Bank re-asserted its commit-ment to the Eurozone by supporting sovereign credit markets with the Outright Monetary Transactions (OMT) program. The Bank of Japan undertook further mone-tary-easing policy in an effort to tackle deflation. Monetary policies are still likely to lead the markets in 2013, and might continue supporting this upward trend.