It now stands at a four-year low against the dollar, after a battering from investors, who have been disposing of yen-denominated assets as fast as they can.. The Wisdom of investing in emerging markets gained further confirmation this year. While the world can gasp at the performance of the US, it is as nothing compared to the returns a more speculatively-minded investor can produce in one of the many stock market hot spots. In 1996, enormous returns came from countries such as Russia, where the Moscow Times Index has risen 162 per cent in local currency terms.

And don't be put off by fears over the currency - even in dollar terms, investors in Russia have made a handsome 116 per cent return on their outlay. Despite the murky politics, and the even murkier business practices, investors have seized on Russia as one of the great undervalued markets in the world. Privatisation in Russia has seen many state assets flogged off at bargain basement prices. There is a growing belief that as interest rates are brought under control, the fall in the rouble slows, and inflation is contained, that investment will start to rise.It is a similar story in many other east European markets, which also put in some staggering returns. Poland has produced a 66 per cent rise, in dollar terms, while the Czech Republic gained 33 per cent.Likewise, investors in most Latin American countries did not go empty- handed. Venezuela was the best-performing market, up 115 per cent, helped in the main by the rise of the oil price, while Brazil rose 37 per cent.Among the decliners was South Africa, down 17 per cent, hampered by a weak rand, and uncertainty over its political stability. South Korea, one of the Asian tigers, has come down to earth with a bump, its market off 37 per cent. Chile fell 16 per cent.Winners % change (US$)Venezuela +134Russia +116Poland +67Losers Chile -8.6South Africa -19.8Thailand -36.8.

1996 Was, to paraphrase legendary baseball quipper Yogi Berra, "like deja vu all over again". It was a year that started and finished with successful, hostile takeover bids, and one in which house prices soared, retail sales took off, City bonuses and directors' pay entered orbit, and financial markets across the world abandoned all pretence of balance to become raging bulls. Champagne sales were up, and other fast- moving lines included Porsches, racehorses, mobile phones and cocaine The City reeled from new scandals. And finally, it was a year in which plans were tabled to redevelop Battersea Power Station as a leisure emporium. Yes, 1996 looked very like 1986, the year of Big Bang, Guinness's bid for Distillers, and the first appearance of be-braced yuppies. That year set the tone for the decade - conveniently forgetting the recessions, strikes and record unemployment also present in that era.