Financial Experts Make Fearless Predictions for 2012Posted by in Blog on January 9, 2012
What is the world’s financial outlook for 2012? The Wall Street Journal surveyed some financial experts about the 2012 investing landscape, and what we can expect over the coming year.
The Journal says that most of the people they surveyed “predict a slow slog for stocks.” However, Tobias Levkovich, who serves as Citibank chief U.S. equity strategist, is more bullish on the market, saying that stocks could do surprisingly well. James Paulsen of Wells Capital Management said he expected emerging-market stocks to thrive. And “Buy High, Sell Higher” author Joe Terranova told the paper, “I expect a historic reallocation trade out of safe-haven Treasurys into risk assets” like stocks.
Will this be the year the housing market finally rebounds? Some of the experts the Journal talked to seem to think so. Stocks related to housing have gone up 30% since September, and hedge funds have been snapping up housing stock. However, the Journal says Goldman Sachs “expects a bottom for the market in 2013,” but notes that “these stocks could be strong in 2012, ahead of this change.”
Oil prices, which ended 2012 at $100 a barrel, may drop in 2012, giving consumers “a lift,” the Journal says. Experts also expected natural gas prices to fall. As for Japan, “The yen will weaken significantly,” says Gary Evans, who writes the Global Macro Monitor blog. And finally, there could be a selloff of U.S. Treasury bonds.
Written by Lisa Swan