CMS Markets' outlook cautiously optimistic
CMC Markets has used its annual global outlook to predict that despite predictions for growth of between 2.5 per cent and 3.5 per cent, investors will remain cautious in 2013.
CMC Markets chief market strategy Michael McCarthy said 2013 would see investors remain cautious and focussed on investment basics.
Acknowledging that the economic recovery and (partial) clearing of a political logjam in the US, the downgrading of European fears to 'negative growth' from 'financial catastrophe', and the stabilisation of growth in China pointed to a positive, modest growth scenario for the global economy over 2013, McCarthy pointed to the underlying sentiment.
"2013 will see investors remain cautious and focused on investment basics," he said.
"Dividend yields will be top of investors' minds, and with interest rates close to zero we expect to see a continued shift in investor thinking away from capital protection and safe havens towards real returns. This is essentially a re-balancing of the risk-to-reward equation," McCarthy said.
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