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
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
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.
SOURCE: Richardson GMP
For further information:
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Richardson GMP Limited
Tammy Clark, Director, Marketing
350 Burnhamthorpe Road West, Suite 304
Mississauga, Ontario L5B 3J1
Tel.: 905.615.5614 - 866.205.3548
Marie Blouin Nightingale, Manager, Marketing
1250, René-Lévesque West, Suite 1500
Montréal, Québec H3B 4W8
Tel.: 514.989.4848 - 866.697.7174