At the beginning of a new year, it is good tradition to reflect on things past and look at what the future may bring. 2012 has been a year of balance sheet repair, a process that is likely to continue for many years and will depress growth in 2013 as well. Consequently, I would not be surprised if stock markets will disappoint somewhat in the coming months. Read more about my outlook for the different regions.
The economic and investment prospects for 2013 depend primarily on how quickly the developed economies – especially the US, the eurozone and the UK – can facilitate the repair of balance sheets in the household and financial sectors of their economies, and secondarily on how quickly they can address the problems of the public or government sector indebtedness. Although emerging market economies generally have less indebtedness, their inability to decouple from developed markets has undermined their growth rates in 2012 and should continue to do so in 2013.
Source : Invesco Real Estate