2013 Forecast: Good Economy, Challenged Markets

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Global equity and fixed income markets in 2012 all had a banner year led by Global REITs, Midcap, Smallcap and EAFE, which all topped the S&P 500's 16% total return. A last minute Congressional deal on the Fiscal Cliff sparked an end of year rally, setting the stage for an impressive relief rally to start off the first day of trading of 2013. The market has not digested the full economic ramifications of the new law -or inevitable follow-up changes yet to come -but that is for later. For a deeper analysis and answers to many questions on the minds of investors please review our "2013 Forecast: Good Economy, Challenged Markets", summarized below.

  • Global and U.S. economies are at reasonably good levels, but markets pay for and demand growth.
  • Negative S&P 500 corporate profit growth for 3rd quarter 2012 is signaling a defensive posture to start 2013.
  • The consumer remains the game changer with a boost from a resurgent housing market.
  • Tectonic shifts in energy, global trade, frontier markets and technology are catalysts for growth in 2013.

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