We thought the 21st century would be a replay of the Swinging Sixties, with levitating cars and a lovely house for everyone. But for the developed countries a growing global population has created two major challenges: competition for resources and energy on the external front and the need to maintain a standard of living threatened by unbridled globalisation.

So far no one has dared to question the new economic model that has reshaped our planet and that we are not equipped to survive in, at this juncture. There is no underestimating the danger of serious conflict, although that will be a problem for the next decade. The industrialised world has managed to keep stumbling along thanks to some amazing acrobats who do not balk at dancing across deep gorges on a tightrope. Twice in the past ten years our central bankers have put policies in place that have prevented disaster, making up for the mediocrity of politicians that nothing can be done for.

At present, roughly a year after coming within an inch of lurching into the abyss, the global economy is back on its feet. Ben Bernanke, Jean-Claude Trichet and their counterparts the world over ventured into uncharted territory with prudence and courage. They warned us in early November that interest rates would stay low much longer than we had expected. Inflation is not a problem; indeed, every effort still has to be made to prevent shaky economies from backsliding into depression. For investors this means short-term placements will continue to pay almost no interest. And with bonds (especially corporate issues) yielding far less than they did ten months ago, part of the glut of cash will continue to be put to work in riskier assets.

2009 has been a fabulous year for companies jockeying for position. The winners weathered the recession well and have increased their market share. Their earnings will enjoy an exceptional base effect compared with the levels seen in the fourth quarter last year. So I think it would be a good idea to stay invested in equities. True, we should be aware that the bubble is being filled with hydrogen again, but it has a long way to go yet. If there is an explosion, it will come much later. For the time being stockmarkets will continue to benefit, even if it is not for the right reasons.