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Mixed Global Growth Warrants a Focus on Emerging Markets

February 20, 2013

Global growth levels will be mixed in 2013, suggesting that investors should focus on emerging markets.
-Russ Koesterich, global chief investment strategist, Blackrock

 

Overview

  • Markets have been quiet as investors digest mixed economic data.
  • Higher payroll taxes look to put a damper on US economic growth in the first half of the year.
  • Emerging markets should outpace domestic ones, suggesting a bias toward EM equities.

Markets Continue to Digest January's Gains

As was the case the prior week, last week saw little price change in US financial markets as investors are apparently taking a breather to digest some mixed economic news. For the week, the Dow Jones Industrial Average fell fractionally to end the week at 13,981, while the S&P 500 Index and Nasdaq Composite each advanced 0.1% to close at 1,519 and 3,192, respectively. Fixed income markets were also little changed, with the yield on the 10-year Treasury rising very slightly to end the week at 2.01%.

 


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