After a tumultuous second half of 2011 in the financial markets, on the face of it, 2012 does not appear to hold much to cheer about, particularly in Europe. What will happen to the Euro? Where will the next sovereign downgrade occur? How much more equity do European banks need in order to restore confidence? There are no quick fixes to this uncertainty. However, as Benjamin Disraeli once said “there is no education like adversity”. In this Market Insight we ask what we can learn from these very volatile markets and where the bright spots might be in 2012.