Saxo Bank's Chief Investment Officer, Steen Jakobsen, is moving eighty per cent of his portfolio into fixed income.  He's deeply pessimistic about global economic conditions next year and he's predicting near zero growth in both Germany and the USA.

Steen says the first rule of trading is always the preservation of capital. When everyone's looking to see what the Federal Reserve will do with its bond buying programme, looking for value is key. He adds that the most undervalued market place right now is government bonds, notably German bunds and US Treasury bonds.

His call is deeply against consensus but he defends his position. He says the market is very cyclical and there's a basic inability to create sustainable and meaningful jobs.  The significant increase in US and European bond yields is going to kill what he calls the "small green shoots" of growth. The German election, another Greek and possibly Portuguese bailout and conflict in the Middle East will all contribute, he says, to a severe decline in the global economy.