Brevan Howard Says 2011 Choppy Markets Will Be Repeated in 2012

Brevan Howard Asset Management LLP, the $32.6 billion hedge fund co-founded by Alan Howard, predicted market volatility this year will match that of 2011 as governments in Europe and the U.S. cut spending and growth in emerging economies slows.

“Enthusiasm for additional stimulus appears to have come to an end,” London-based Brevan Howard wrote in a note today. “The largest economies are in a liquidity trap and emerging markets are slowing markedly. Financial markets and the economy are at the mercy of the convergence of these positive and negative forces in 2012.”