S&P Dow Jones Indices Recaps 2012 Financial Market Performance; Identifies Headwinds That Could Impact Returns In 2013
NEW YORK, Dec. 6, 2012 /PRNewswire/ -- S&P Dow Jones Indices, the world's largest provider of financial market indices, has released today a review on the performance of the financial markets in 2012 and a look at the factors that could potentially impact asset class and broad market performance in 2013 discussing housing and the economy, commodities, U.S. equities, and the municipal bond market.
Key Takeaways Housing/Economy – Dr. David Blitzer, Managing Director and Chairman of the Index Committee
- Housing will contribute to U.S. economic growth in 2013.
- Economically, we can't afford to slide over the fiscal cliff over the short-term.
- Longer-term, business barometers all look favorable for economic expansion, even if we fall over the fiscal cliff.
Commodities – Jodie Gunzberg, Director of Commodity Indices
- After a tumultuous year in commodities, expect fundamentals to anchor 2013.
- China's increased need for oil could offset demand declines in the U.S. and Europe.
- The commodities unknown: the impact of quantitative easing and the Eurozone crisis.
U.S. Equities – Howard Silverblatt, Senior Index Analyst
- The 2013 market outlook looks very challenging.
- The U.S. election outcome did little to alleviate uncertainty or encourage investment.
- Dividend payments should be 6% higher next year even if levels don't change, reflecting hikes made during 2012.
- Dividends may be the only game in town for investors seeking current income.
- Expect an accelerated depreciation schedule to be cleared for companies, especially smaller ones.
- The 2013 municipal bond market could hinge on the uncertainty of tax code changes and their impact on the tax treatment of municipal bonds.
- The market could be influenced by any introduction of recovery bonds following Hurricane Sandy and/or a rising interest-rate environment.
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