THE HOLIDAYS PORTFOLIO
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Europe
The Spanish recent auction test passed positively but the next year refinancing might prove more difficult if sentiment doesn't improve.
Trichet extension of the emergency liquidity measure should provide with some good reassurance in the short term till the first quarter of 2011.

Sweet Holidays
Among the very good performers this year we have Swiss Chocolate producers. Some of these traditional Chocolate markers produced very good results with less than average volatility. Even with a further increase in Cocoa prices chocolate producers with a strong brand will be able to pass the cost to the consumer.

Recharge your Portfolio
Lithium Demand, given the heavy use in notebooks, mobile phones etc., is expected to raise from the current 4 billion $ per year to over 20 billion. Similarly the possible increase in demand to electronic cars (to a potential of 250 million cars by 2020) will be beneficial for this sector. For this reason an investment in companies involved in Lithium extraction and Lithium-ion batteries producers can be beneficial.

Chinese Gold

Chinese imports of gold increased fivefold this year. This is a result of investors moving to mini gold bar for fear of inflation. Considering that China is the biggest producer of gold the increase in import is, to say the lead, surprising. Investors demand for Gold is expected to increase to 150 tons (up from 105 last year).

Strategy Summary

- Volatility in the European markets might continue toward 2011 unless Governments like Spain can reassure investors.
- Swiss Chocolate producers had a good 2010 and the trend can continue in 2011.
- Despite the correction and increased volatility commodities are still an interesting play to provide protection in the portfolio.
- Lithium producers and producers of Lithium-ion batteries might benefit from increasing demand and can be a good investment opportunity.