This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

2013 Outlook From The BlackRock Investment Institute: WORLD TO SURPASS (LOW) EXPECTATIONS IN 2013

Prospects are improving for a positive albeit gradual turn next year in global economic and investment conditions, according to the BlackRock (NYSE: BLK) Investment Institute’s 2013 investment outlook, released today and entitled: “Slow Turn Ahead?”

Investors need to keep a close eye on the impact of government policy – first and foremost, the urgent effort to avoid the looming “fiscal cliff” in the US, which will drive the direction of both the US and global economies in 2013, according to the BlackRock Investment Institute (BII).

“Our big questions for 2013 are whether the wave of ultra-loose monetary policies and quantitative easing has crested and if private sector credit can stage a modest recovery,” said Ewen Cameron Watt, BII’s Chief Investment Strategist. “Trillions of dollars in monetary stimulus and record low interest rates have failed to spur much credit growth and economic activity so far. But what if this changes?”

“Policy - fiscal, monetary and regulatory - drove markets in 2012 and will remain central to 2013 outcomes,” he said.

With global central banks apparently refocusing monetary stimulus away from preventing a financial sector collapse and toward targeting economic growth, next steps by the US Federal Reserve will merit particularly close attention, according to the report.

“We do not expect the Fed to raise rates any time soon. But it could take its foot off the monetary accelerator on signs of quickening job growth in the second half of 2013,” Cameron Watt noted. “Markets need only a whiff of a Fed preparing to slow its QE programs because of improving employment to empty some of the vast store of investor money in cash and low-yielding fixed income assets, and put it into equities.”

Yet, in the US, much hinges on efforts to avoid the fiscal cliff, a set of tax hikes and spending cuts set to go into effect Jan. 1. "The United States may turn the corner on growth -– if Washington can avoid falling off the fiscal cliff and negotiate a long-term budget reduction plan,” according to the report.

1 of 9

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs