With 2012 behind us, here are a few good reasons investors
should be optimistic about 2013:
·
It looks like the worst is over for the U.S., with
both job creation and improvements in the U.S. housing market consumer
confidence is on the rise.
·
The Canadian economy continues to remain stable;
enjoying low interest rates, a strong dollar and a declining deficit. However,
we need to keep an eye on rising consumer debt levels as this remains the main
risk to our economy.
·
The outlook for oil prices in 2013 is neutral to
positive.
·
Though no one is expecting to hit the lights
out; base metals such as copper, nickel and zinc are expected to generate
positive returns in 2013. Gold is
expected to be more neutral in the longer term.
·
North American stock markets are poised to
provide another year of positive performance in 2013, with the U.S. leading the
way and Canada following along behind.
·
Companies are expected to grow and make money in
2013, the expectations aren’t fantastic, but they remain positive.
·
Trade-dependent Asian markets (and Canada)
should get a lift from the recent rebound in Chinese economic growth given
recent signs of improvement, due to monetary and fiscal stimulus into the
world’s second largest economy.
·
Many larger dividend-paying corporations remain
sound and will likely continue to provide investors with a buffer against
market volatility.
·
In the bond market; corporate bonds remain the preferred
choice over government bonds, with shorter maturities preferred over the longer
term bonds.
·
Technology and Industrial companies are favored
for their earnings stability and their ability to generate cash flow.
So, it looks like we should see modest improvement in the
markets this year. The last few years have
been difficult for investors; it is nice to finally get some encouraging news.
Have a great weekend,
Tracey
Source: Original
article published on Advisor.ca 01/08/13
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