Richardson GMP releases Outlook 2013 video series and summary
TORONTO, Jan. 8, 2013 /CNW/ - Richardson GMP today released its Outlook 2013 video and summary paper. Richardson GMP's David Andrews, Director of Investment Management & Research, and Gareth Watson, Vice President of Investment Management & Research, share their thoughts on 2012 and the outlook for 2013.
The report notes that 2012 was a very difficult year for investors. Like every year since the 2008 financial crisis, markets were faced with many "unknowns" such as the ongoing struggles for financial stability in Europe, the verdict on whether China could continue its strong pace of growth while its trading partners struggled, the impact of the election in the United States, and the potential fall-out from the "fiscal cliff". Despite continued uncertainty, the team's view of the global economy has improved, leaving them more optimistic moving into 2013 than one year ago.
Highlights from Richardson GMP's 2013 Outlook
Based on the team's review of market and economic factors in 2012, the report includes the following highlights:
- There is optimism about the American economy with a belief that the worst is behind the U.S., largely due to job creation and an expectation that the U.S. housing market is on the rise - both helping to increase consumer confidence.
- While the Canadian economy remains stable with low interest rates and a declining deficit, 2013 is expected to maintain the status quo with the greatest risk to the economy being rising consumer debt levels despite the continuing attractiveness of the Canadian dollar.
- The outlook for oil prices in 2013 is neutral to positive.
- While not to the levels seen in previous runs, base metals such as copper, nickel and zinc are expected to generate positive returns, with expectations for gold being more neutral in the longer term.
- North American stocks are poised to provide another year of positive performance in 2013 with the U.S. expected to set the pace and returns from Canadian stocks, while positive, likely to follow behind.
- Earnings growth will remain subdued in 2013, but should remain positive, with current market multiples already appearing to reflect these lowered expectations.
- Trade-dependent Asian markets should get a lift from a rebound in Chinese economic growth given recent signs of improvement and the new Politburo's commitment to both monetary and fiscal stimulus in an effort to revive the world's second largest economy.
- Dividend paying characteristics of many larger corporations remain sound and will likely provide investors some buffer to continuing market volatility.
- The current fixed income recommendation is decidedly overweight corporate bonds versus government bonds with a shorter maturity over longer dated issues.
- Information Technology and Industrials are favoured both for their earnings stability and their cash flow generation capabilities.
About Richardson GMP
As Canada's largest independent wealth management firm, Richardson GMP Limited provides exclusive and innovative investment solutions to successful families and entrepreneurs. With offices located in Victoria, Sidney, Vancouver, Banff, Edmonton, Red Deer, Calgary, Saskatoon, Winnipeg, Guelph, Mississauga, Toronto, Ottawa, Montréal and Charlottetown, Richardson GMP has earned top overall ranking in the 2010, 2011 and 2012 Investment Executive Brokerage Report Card for products and services dedicated to high net worth investors. Richardson GMP Limited is a member of the Canadian Investor Protection Fund.
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