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:
- Interest rates are likely to remain low for a few years,
- investors should lower their return expectations, and
- “policy” will remain incremental in key developed and emerging markets economies.
Fom an asset class return perspective, there were six key projections:
- Bonds will have virtually no nominal returns for the foreseeable future.
- High yield and emerging market local debt will provide attractive