Despite the wall of worry investors scaled throughout 2012, most were rewarded with modest to favorable returns in broad asset classes such as global equities, corporate and emerging market bonds, and precious metals. Yet many of the same uncertainties investors faced throughout 2012 remain with the start of the New Year. We asked our panel of experts for their opinions on what factors investors should consider in helping to develop a portfolio strategy for 2013.
Chuck Butler, President of EverBank World Markets, Frank Trotter, President of EverBank Direct, and Chris Gaffney, Senior Vice President of EverBank World Markets, sat down to share their personal thoughts and strategies for weathering ongoing market uncertainties in this 5-minute video, Economic Outlook for 2013. The collective conclusions focus on three key areas of agreement:
| • | Continued US economic weakness |
| • | A nascent recovery in European markets |
| • | Growth opportunities within Asian economies |
Chuck views the US economy as losing momentum in 2013 resulting from waning US corporate profits, potential fiscal tightening, and the ongoing housing malaise. Conversely, a ‘calming’ in the European market may become a bright spot for currency investors relative to US dollar investment.
Frank identifies the geopolitical environment as hampering effective economic progress due to social unrest and political infighting, with US policy makers having a clear and present impact on domestic economic prospects relative to Europe and Asia. Suffice it to say, Frank’s comments seem to portend that 2013 markets will likely remain in a macro-driven milieu.
And Chris similarly shares his sanguine view of the markets outside the US, particularly in China, given an improving manufacturing base and an emerging Chinese middle-class helping to support consumption-driven economic growth throughout the region, as well as demand for precious metal investment.
Our group of experts is clearly in agreement on the benefits of a continued portfolio diversification strategy to help address continued global uncertainties expected in 2013, not only geographically but also in terms of asset class selection among traditional and alternative investment choices, including currencies and precious metals.
Investors need not be on their own in developing portfolio strategies to navigate continued uncertainties for 2013. Let our group of market experts help with their timely insights into the global marketplace.
Sincerely,
Mike Meyer
Assistant Vice President
EverBank World Markets, a division of EverBank
800.926.4922
---
Comments
All comments are moderated. Please go here to read comment guidelines.
Chuck mentioned the possibility of the US economy losing momentum and housing continuing to slump related to fiscal tightening. Do you think this potential fiscal tightening will be through higher interest rates or a reduction in government spending?
We hear a variety of viewpoints on interest rates. Some say we will eventually return to the high interest rates of the early 1980s and other writers say we will go the way of Japan with ‘forever’ artificially low interest rates.
It would be interesting to hear what your panel believes will happen in the US. In other words, will the market ultimately rule (with rising rates) or will government intervention continue to prevail, as has seemingly happened in Japan? If the market will ultimately prevail and interest rates rise in the US, what is the difference between the US economy and Japan’s that explains those two different outcomes?
Thanks for sharing your thoughts!
Hello,
My general consensus is that the Fed will not raise interest rates within the foreseeable future since they have basically pegged interest rates to unemployment. Assuming the labor market doesn’t improve significantly, I don’t see the likelihood of rate hikes. Any fiscal tightening would, in my opinion, result from a reduction in government spending via fiscal cliff measures. Ultimately, I would anticipate a similar situation that transpired in Japan. Hopefully this helps.
Greetings…I’ll bet alot of other viewer-wanna-bes are just like me…wanting to view but only getting a dead black screen? Tried several times but no go…is it just me?
Hello,
Please make certain you are viewing the whole email, and have accepted downloads and pictures. When you do, you will see a video box with Frank, Chris and Chuck which you will then see a play button to view the video. Also, you will want to make sure you have the latest version of Adobe Flash Player. Hope that helps.
No sound???
Hi Phil,
This video is hosted via YouTube and is working correctly. Sound issues may be due to your personal computer settings.