CHICAGO, IL--(Marketwire - Jan 2, 2013) - BMO Global Asset Management today released their 2013-2014 Market Outlook, "More Silver Linings than Clouds," highlighting the hurdles Europe, China and the U.S. must overcome to keep the global economic recovery intact.
"In this report, we explore both the clouds and the silver linings in these three major world economies. We believe the success these regions have in overcoming their challenges will set the course for global growth. In the meanwhile, investors can position their portfolios to both protect and participate in the opportunities at hand," says Sandy Lincoln, Chief Market Strategist at BMO Global Asset Management.
While both the stock and bond markets have made significant recoveries domestically, the European economy has inched toward recession. Despite debt in the southern countries, the European Central Bank (ECB) and the European Union (EU) developed plans that have already produced some positive results:
- Decreased interest rates
- Established emergency reserves
- ECB's new role as bank supervisor for the EU
- Germany and France avoiding recession
- Rebound by the STOXX Europe 600 Index
China's slowdown, which was induced by measures taken to moderate inflation and rapid growth, has been exacerbated by Europe's weakness. As a result, their government has taken reverse actions to jump-start demand. BMO Global Asset Management sees several encouraging trends from this:
- Decreased lending rates
- Export growth turned positive
- GDP has steadied
- Increased retail sales
Here in the U.S., setting the fiscal cliff aside, we have been benefitting from powerful trends in consumer confidence and an uptick in the housing sector. Some optimistic economic signs include:
- Rising consumer confidence and retail sales
- Housing upswing
- Rising employment rates
- Positive manufacturing activity
- Solid corporate operating margins
While there is much to accomplish in the coming year, BMO Global Asset Management acknowledges the silver linings enveloping these clouds and the opportunities they present for equity and fixed income investors.
About BMO Global Asset Management
BMO Global Asset Management is a global investment manager with more than $115 billion in assets under management as of October 31, 2012, including the BMO family of mutual funds.
Our two multi-disciplined teams are based in Toronto and Chicago, and our network of world-class boutique managers is strategically located across the globe. They include Monegy, Inc., Pyrford International Ltd., Lloyd George Management and Taplin, Canida & Habacht, LLC. BMO Global Asset Management delivers service excellence from offices throughout North America, and in Abu Dhabi, Hong Kong, London, Mumbai and Singapore. Our approach has led us to be recognized by Pension & Investments as one of the world's largest 100 asset managers based on combined assets under management as of Dec. 31, 2011.
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