Tuesday, July 13, 2010

Citibank Mid-Year Outlook at the Ritz Carlton on the 8th July 2010

Prefer bonds over equity
Positive investment grade bonds, prefer Emerging market Sovereign and high yield bonds
Prefers US & North Asian Equity markets

US & North Asian Equities, Global healthcare
Emerging market consumerism & hedge funds

S&P trailing price to book value and trailing price to earnings ratio is currently below 15 year average

Continue to expect sustained but uneven global economic recovery. Europe to be weakest link, Asia ex Japan to be area of strongest growth

Global inflation to remain subdued

Anticipate USD to remain range bound against G7 currencies. Asian units to continue modest appreciation trend.

Asia equities to outperform global equities in a volatile environment

Real assets (gold/oil) will become more attractive in a fiscally irresponsible world.

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