Asset Management
Optimistic Outlook For Markets In 2013; China, India To Shine - Investec
Investors should go into 2013 with a stronger sense of optimism, despite ongoing uncertainty over the eurozone economy, according to Vision 2013, a new report from Investec Wealth & Investment. In particular, the year ahead will benefit from a strengthening US economy, firmer fundamentals in developing economies, namely China and India, and a more robust outlook for the UK.
“For the UK, 2013 promises to be a better year. We wholeheartedly applaud the Funding for Lending Scheme which may not be perfect but is likely to be a much more productive angle of attack than quantitative easing and the early signs have been highly encouraging. The UK’s lifeboat is that the global economic cycle is turning up and 2013 will see higher growth, higher equity markets and a firmer housing market,” Jim Wood-Smith, chief investment strategist at IW&I, said in a statement.
The report proposes that growth in the developed world in 2013 will be supported by emerging economies, most notably China and India. With regard to China, it says that there was reluctance among business and investors to engage in new enterprises while the fabric of the Communist Party was unknown. With the resolution of this, it forecasts that 2013 will be a time of “debottlenecking” and acceleration in China’s economic growth rate.
IW&I suggests that this is would be a good time for investors to reconsider equities. It points out that, “despite universal and persistent misery amongst investors and commentators alike the returns from equity markets since the first quarter of 2009 have been nothing short of spectacular.”