It is important to have a game plan that shapes our investment tactics - to move forward beyond the short-term volatility of the markets, reduce the risk of emotion-driven wrong decisions, and make it easier to ignore the turbulence.

The festive season offers an opportunity to do some serious thinking as well as relax. Liz and I had a wonderful vacation at the best resort hotel in Cambodia, La Résidence d'Angkor, where we were delighted and proud to find that the general manager is a fellow South African, Karin van Zyl. I had the time to consume some excellent brain food, such as John Mauldin's book Endgame.

Looking forward, here's how I see the major factors that are likely to influence values this year in the principal asset classes:

David Fuller's view Experienced observer Martin Spring provides as good a summary of major markets - stocks, bonds, currencies & commodities - as you are likely to see at this time of year. And he includes some bold forecasts.

The second half of On Target is an informative section on "Investment Traps for Expats to Avoid." Highly recommended.