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
TheStreet Open House

Prudential Experts: Equity Markets Post Solid Gains In First Half Of 2013 As US Economy Improves; Fed Action Could Inject Some Volatility

Stocks in this article: PRU

Prudential market experts say they expect the U.S. economy to continue its recovery and still fragile global markets to begin to stabilize over the rest of the year and into 2014. However, U.S. fiscal policy remains a drag on the economy and Federal Reserve policy could create some volatility depending on when the Fed decides to begin easing interest rates higher, through the so-called “tapering” many have been expecting. The experts, all from businesses of Prudential Financial, Inc. (NYSE: PRU), outlined their views today at the Prudential 2013 Midyear Global Markets & Economic Outlook briefing in New York City.

A replay of the outlook briefing is available on Prudential’s newsroom.

Ed Keon, managing director of Quantitative Management Associates and a member of its asset allocation team, said stock markets have come roaring back following the recent financial crisis and a “near-miss” of a second Great Depression, more than doubling from their lows of March, 2009. Though many investors remain fearful as they watch carefully to see how the Federal Reserve may alter its policy, he believes the economic recovery is likely to continue and could lead to robust GDP growth in 2014.

“Extraordinary actions by the U.S. Federal Reserve have had a profound influence on the markets and the economy, but if the Fed reduces its support, will the economy and the markets come crashing back to earth?” Keon said. “Might the Fed’s actions so far have already sown the seeds of future inflation and instability? Ultimately, we offer an optimistic view of the economy, and suggest that the recovery is real and likely to gain strength over the next couple of years.”

Quincy Krosby, a Prudential market strategist, noted that the U.S. is on the road toward interest rate normalization as long as the data continue to gain traction. She also said that global markets will face detours along the road to normalization.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,390.52 +195.10 1.13%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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