Keitel also said that the biggest risk for the global capital markets in 2012 will be posed by the Eurozone situation, but he also hopes that the European Central Bank (ECB) might provide some relief to investors.

"Competition will stay high, margins are under pressure and the industry will remain challenging in 2012 but here is scope for some guarded optimism among the industry’s top players," Keitel added.

The markets, be it the stock, credit or currency, have been through a turbulent phase in 2011 caused by the sovereign debt crisis in the Eurozone, which has further deepened the prospects of a global recession.

By Keitel’s assessment, in the present market scenario, equity markets are more attractive than other asset classes.

"From a valuation point of view, equity markets are reasonably attractive, especially when you compare dividend yields to bond yields," he added.

According to Keitel, investors should opt to branch out away from government bonds to other fixed income classes.

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"Peripheral bonds, high-yield bonds, emerging market bonds and high-grade corporate bonds will give investors portfolio diversification and yield enhancement. You need government bonds but underweight and in a small duration," he said.