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Equity and Bond Market Outlook 2013

Posted in For Investors and Fund Managers, Fund Managers, News and Recent Events, VC & Private Equity

Asher Headshot - Resized.pngCONTRIBUTED BY
Asher Bearman
asher.bearman@dlapiper.com

A friend of mine at a major investment bank sent me their market outlook for 2013.  In 2012, the world markets were up 16%.  For 2013, they are projecting:

  1. Interest rates are likely to remain low for a few years, 
  2. investors should lower their return expectations, and
  3. “policy” will remain incremental in key developed and emerging markets economies.

Fom an asset class return perspective, there were six key projections:

  1. Bonds will have virtually no nominal returns for the foreseeable future.
  2. High yield and emerging market local debt will provide attractive absolute and volatility-adjusted returns.
  3. Hedge funds will have mid single-digit returns.
  4. US equities have both near-term and long-term attractive returns, especially relative to bonds.
  5. Euro Stoxx 50 and US banks have the most attractive near-term and long-term returns.
  6. Emerging market equities will provide reasonable but not exceptional returns given the various risks.

DISCLAIMER:  We at The Venture Alley do not express any opinion on the above perspectives and may not share these views.