• FX is experiencing lower levels of volatility in a benign, low-risk environment but this is not necessarily a bad thing for the market and there are still opportunities to make money
• US sub-prime mortgage concerns should not be ignored but are not that big a factor to most market players. However, other areas of risk, such as geopolitical, need to be properly priced in and may not yet be so
• Emerging markets are an expanding asset class and offer a potential source of alpha but they require patience in order to spot the best opportunities
• Research is still an important service that banks can provide the buy side, which is always on the lookout for good ideas, but it needs to be carefully tailored and selectively distributed, not mass marketed