The politicians in Washington are now facing up to years of deficits and expiring tax breaks,and there will be real consequences for investors.They need to take care of spending first,according to Stephen Wood,PhD,Chief Market Strategist at Russell Investments.Even if everything goes right,you're looking at -1% GDP.If everything goes wrong,there will be -4 GDP.
If no agreement is reached on the budget,sequestration will come into force.Sequestration means government spending being take out of the economy.This is what deleveraging looks like.How much government are we willing to pay for?That's going to be less than in previous years.
Investors are going to need to look for a globally diversified,mixed strategy.Look at commodities and emerging markets.
We need to manage expectations of investors.People are being forced up the risk spectrum.They're gonna need more risk to get the returns they're accustomed to.
We've gone from apportioning revenue to apportioning debt.The process isn't that fun to witness,but the end result will be good for our country.
Dr.Wood conducts research on the economy,capital markets,portfolio strategies and investor behaviour.He interfaces with Russell's institutional clients and retail partners to communicate the firm's perspectives on the global market,investment process and portfolio management.He is a frequent guest on business television.
Wednesday, December 26, 2012
Wednesday, December 19, 2012
Business Conditions Report:Two Magnates On Momentum
I think the US economy is the strongest in the world,said Sam Zell,Chairman and CEO of Equity Group Investments.We're likely to see improving scenarios.It's all about confidence.
The government doesn't create jobs.Jobs are created by risk-takers and businessmen.All these small businesses being starved of capital are the ones who create employment.
We monitor all our businesses.Certain ones have more relevance than others.When we see our main customers starting to delay implementation of long range plans,that's an indication of trouble.
Clearly the recovery of the housing market will increase employment.Yet Citi is cutting 11,000 jobs.If you end up with a swap,I'm not sure you're gonna end up with a net plus.
There is a little bit of momentum in the US,adds Sir Martin Sorrell,CEO of WPP Group.It's in retail,but corporates are increasingly concerned and uncertain.
Consumer spending has picked up worldwide.There is a fairly stable,even improving consumer spending regimen.It's retail,and the big branded companies continue to have traction.
Fast-moving consumer goods retailers and manufacturers in the middle got caught.There is a sort of dam of decisions.If there is a resolution of the fiscal cliff,there will be a significant shift in confidence and people will feel confident about 2013.
Chinese consumers have surpassed those in the US as the world's biggest purchasers of luxury goods.
The government doesn't create jobs.Jobs are created by risk-takers and businessmen.All these small businesses being starved of capital are the ones who create employment.
We monitor all our businesses.Certain ones have more relevance than others.When we see our main customers starting to delay implementation of long range plans,that's an indication of trouble.
Clearly the recovery of the housing market will increase employment.Yet Citi is cutting 11,000 jobs.If you end up with a swap,I'm not sure you're gonna end up with a net plus.
There is a little bit of momentum in the US,adds Sir Martin Sorrell,CEO of WPP Group.It's in retail,but corporates are increasingly concerned and uncertain.
Consumer spending has picked up worldwide.There is a fairly stable,even improving consumer spending regimen.It's retail,and the big branded companies continue to have traction.
Fast-moving consumer goods retailers and manufacturers in the middle got caught.There is a sort of dam of decisions.If there is a resolution of the fiscal cliff,there will be a significant shift in confidence and people will feel confident about 2013.
Chinese consumers have surpassed those in the US as the world's biggest purchasers of luxury goods.
Tuesday, December 18, 2012
Wednesday, December 12, 2012
Ladies European Tour Concludes in Dubai With a Chinese Win
The Ladies European Tour has ended its season with the Omega Dubai Ladies Masters at Emirates Golf Club in Dubai,UAE.American Lexi Thompson yielded her title to China's Shanshan Feng on Sunday and her final round 21 under par 69.Dewi Claire Schreeful of the Netherlands was second with a 16 under par 69;third place on the leader board was shared by Caroline Masson of Germany and Becky Brewerton of Wales.
Carlota Ciganda of Spain won the Handa Order of Merit for the season with her earnings total of 251,289.95 euros.She was also named Rookie of the Year.
The tournament was played out against the looming backdrop of the ultramodern skyline of the desert city.
Following her win,Swiss watchmaking titan Omega named Feng a brand ambassador,adding her to a list including Greg Norman,Sergio Garcia and Michelle Wie.Fiancial terms were not disclosed.
In a statement,Omega said it is proud that this outstanding competitor,whose smile lights up every course she plays on,has joined its family of golfing brand ambassadors.The brand looks forward to celebrating with Shanshan Feng each time she adds to her already impressive list of victories and achievements on the golf course.
Besides Omega,tournament sponsors included Gulf News,Drydocks World,Maritime World,Mercedes Benz,Emirates NBD and CNN.
Carlota Ciganda of Spain won the Handa Order of Merit for the season with her earnings total of 251,289.95 euros.She was also named Rookie of the Year.
The tournament was played out against the looming backdrop of the ultramodern skyline of the desert city.
Following her win,Swiss watchmaking titan Omega named Feng a brand ambassador,adding her to a list including Greg Norman,Sergio Garcia and Michelle Wie.Fiancial terms were not disclosed.
In a statement,Omega said it is proud that this outstanding competitor,whose smile lights up every course she plays on,has joined its family of golfing brand ambassadors.The brand looks forward to celebrating with Shanshan Feng each time she adds to her already impressive list of victories and achievements on the golf course.
Besides Omega,tournament sponsors included Gulf News,Drydocks World,Maritime World,Mercedes Benz,Emirates NBD and CNN.
Wednesday, December 5, 2012
Greek and Canadian Business Notes
We have some challenges ahead of us,admits Kostis Hadzidakis,Development Minister of Greece.We know that we have to surprise in a positive way.We have to succeed.There is no alternative.
We want to change the business environment.Greece has to become a business-friendly country.We are about to vote on a law providing a single licensing authority.We are cooperating with the OECD as regards competition in the Greek market.
Because of the crisis,Greece had a very negative image over the past years.We believe that we can see some light at the end of the tunnel.Now we are privatising the natural gas company.We know we must focus our effort on this:to deliver.
EU Commission President Manuel Barroso has praised Greece for showing a strong commitment to financial reform.
Air Canada is planning an Asian expansion.It will spend two billion dollars on new aircraft to accomplish this goal.At the same time,Goldman Sachs has raised Research In Motion to a buy rating ahead of the release of some new devices.
Air Canada(TSX:AC/A),Research In Motion(RIMM)
We want to change the business environment.Greece has to become a business-friendly country.We are about to vote on a law providing a single licensing authority.We are cooperating with the OECD as regards competition in the Greek market.
Because of the crisis,Greece had a very negative image over the past years.We believe that we can see some light at the end of the tunnel.Now we are privatising the natural gas company.We know we must focus our effort on this:to deliver.
EU Commission President Manuel Barroso has praised Greece for showing a strong commitment to financial reform.
Air Canada is planning an Asian expansion.It will spend two billion dollars on new aircraft to accomplish this goal.At the same time,Goldman Sachs has raised Research In Motion to a buy rating ahead of the release of some new devices.
Air Canada(TSX:AC/A),Research In Motion(RIMM)
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