NAPERVILLE, Ill. and LONDON, Oct. 12, 2011 /PRNewswire/ -- Calamos Investments, a global investment management firm, released its Economic Review and Outlook. Calamos' Co-Chief Investment Officers, John P. Calamos, Sr. and Nick P. Calamos provide their views on the current economic environment and discuss factors which may affect the global markets and investing opportunities and risks. Calamos invites you to read the entire Economic Review and Outlook at Calamos.com/Outlook. Select topics include the following:
The Global Economy Continues to Heal
The pace of growth remains uncertain, but we have seen improvements in many areas, including consumer deleveraging and recapitalization of U.S. banks. Despite the banking and debt crises in many economies, global economic data indicates that we are not facing a Depression-type scenario. Growth in emerging markets has provided a buffer and even an engine for growth in many industries.
Debt Deleveraging Has Potential to Lift Equity Markets
Although emerging markets can come to the rescue for a few more years, the health of the global recovery depends on debt deleveraging in developed markets. Historically, deleveraging has been conducive to equity market performance. We believe that it is essential that governments reduce debts and that markets be allowed to clear normally, without intervention.
Global Growth Equities May Offer the Most Attractive Risk/Reward Opportunity
We believe growth companies with diversified revenues and without country bias offer the best risk and return prospects, overall. Valuations remain particularly compelling for many global growth equities according to a number of our measures, such as price-to-earnings ratios relative to value stocks and projected free cash flows. We favor companies positioned to potentially benefit from U.S. manufacturing growth, capital spending in information technology, global infrastructure build out and the rise of emerging market consumers.