Analysts said that until a final outcome on the U.S. budget becomes clear, many U.S.-based companies could put off big decisions, and slow or even halt hiring and capital expenditures – creating considerable doubt about the potential for corporate earnings growth this year.
Financial Post, December 11, 2012 “Our strongest currency views at the moment are in Asia,” Pierre Lapointe, the head of global strategy and research at Pavilion Global Markets Ltd. in Montreal, said in a note to clients. “We believe this is purely a domestically-led Chinese upswing that will continue through the first half of next year […]
Over the last three or four years there has been a definite heightened interest in real assets.
Gold is also expected to benefit from record low interest rates in the first half of next year. The Federal Reserve has maintained a zero interest rate policy for years and is expected to announce additional asset purchases to keep rates low when it meets this week.
Households are in a poor position to sustain U.S. economic growth because their wages are failing to keep pace with inflation, according to Pavilion Global Markets Ltd. strategists.
All in all, the Q3 earnings season has so far been disappointing and we will not be surprised to see more disappointment in future quarters,” said Pierre Lapointe, a macro strategist at Pavilion Global Markets in Montreal, in a note to clients.