SOURCE: BMO Global Asset Management

BMO Global Asset Management

January 02, 2013 10:01 ET

BMO Global Asset Management Releases 2013-14 Market Outlook: More Silver Linings than Clouds

CHICAGO, IL--(Marketwire - Jan 2, 2013) - BMO Global Asset Management today released their 2013-2014 Market Outlook, "More Silver Linings than Clouds," highlighting the hurdles Europe, China and the U.S. must overcome to keep the global economic recovery intact.

"In this report, we explore both the clouds and the silver linings in these three major world economies. We believe the success these regions have in overcoming their challenges will set the course for global growth. In the meanwhile, investors can position their portfolios to both protect and participate in the opportunities at hand," says Sandy Lincoln, Chief Market Strategist at BMO Global Asset Management.

While both the stock and bond markets have made significant recoveries domestically, the European economy has inched toward recession. Despite debt in the southern countries, the European Central Bank (ECB) and the European Union (EU) developed plans that have already produced some positive results:

  • Decreased interest rates
  • Established emergency reserves
  • ECB's new role as bank supervisor for the EU
  • Germany and France avoiding recession
  • Rebound by the STOXX Europe 600 Index

China's slowdown, which was induced by measures taken to moderate inflation and rapid growth, has been exacerbated by Europe's weakness. As a result, their government has taken reverse actions to jump-start demand. BMO Global Asset Management sees several encouraging trends from this:

  • Decreased lending rates
  • Export growth turned positive
  • GDP has steadied
  • Increased retail sales

Here in the U.S., setting the fiscal cliff aside, we have been benefitting from powerful trends in consumer confidence and an uptick in the housing sector. Some optimistic economic signs include:

  • Rising consumer confidence and retail sales
  • Housing upswing
  • Rising employment rates
  • Positive manufacturing activity
  • Solid corporate operating margins

While there is much to accomplish in the coming year, BMO Global Asset Management acknowledges the silver linings enveloping these clouds and the opportunities they present for equity and fixed income investors.

 For more information, visit For a complete copy of BMO Global Asset Management's 2013-2014 Market Outlook, visit "Investment Perspectives."

About BMO Global Asset Management

BMO Global Asset Management is a global investment manager with more than $115 billion in assets under management as of October 31, 2012, including the BMO family of mutual funds.

Our two multi-disciplined teams are based in Toronto and Chicago, and our network of world-class boutique managers is strategically located across the globe. They include Monegy, Inc., Pyrford International Ltd., Lloyd George Management and Taplin, Canida & Habacht, LLC. BMO Global Asset Management delivers service excellence from offices throughout North America, and in Abu Dhabi, Hong Kong, London, Mumbai and Singapore. Our approach has led us to be recognized by Pension & Investments as one of the world's largest 100 asset managers based on combined assets under management as of Dec. 31, 2011.

We are a part of BMO Financial Group (NYSE: BMO), a fully diversified financial services organization with $525 billion total assets and more than 46,000 employees as of October 31, 2012.

BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide trust, custody, securities lending, investment management, and retirement plan services. Certain of the products and services offered under the brand name BMO Global Asset Management are designed specifically for various categories of investors in a number of different countries and regions. Products and services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations. BMO Financial Group (NYSE: BMO), is a service mark of Bank of Montreal (BMO).

BMO Asset Management Corp. is the investment adviser to the BMO Funds. M&I Distributors LLC is the distributor. BMO Funds are not marketed or sold outside the United States.

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All investments involve risk, including the possible loss of principal.

Investment products are: Not FDIC Insured | No Bank Guarantee | May Lose Value

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