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From Komfie Manalo, Opalesque Asia:
Swiss banking group Syz & Co. last week released its latest “Market Outlook” report which predicts that the stock markets rebound this March would not be sustained. It adds that the stimulus plans and the aggressive monetary policies by leading economies would, at best, enable the stabilization of the economic situation during the second part of the year, but not provide enough hope for a marked economic recovery.
In the light of these factors, the group said it would change its asset allocation by reinforcing the stability of the company’s portfolios.
In the report, Syz & Co. said it would reduce its exposure to equities from 17% to 14% and raise its exposure to gold from 3% to 5% and short-term bonds from 50% to 51%. It would also reduce its European equities by 1%, U.S. equities by 1% and Japanese equities by 1%.
Economic outlook
United States
According to the report, the U.S. budget deficit has already exploded, more particularly with the latest $789bn stimulus plan under the Obama administration. It exploded in the last quarter of 2008, and the situation further deteriorated during the first two months of 2009.
It is highly likely that the U.S. public deficit would be close to 12% of GDP this year, the report said.
On Saturday (21-Mar-09), the Congressional Budget Office estimated that the U.S. budget deficit could jump to $1.845tln in f...................... To view our full article Click here
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