So far this year, the equities markets have rallied, fixed-income assets are taking a beating on rising raetes and commodities have underperformed. Consequently, State Street Global Advisors believes exchange traded fund investors should begin to take more careful exposure considerations.
“With real GDP growth of 3.4%, the SSgA Economics Team continues to expect that 2013 will see an improvement in global growth relative to the 3.2% delivered in 2012,” writes David B. Mazza, Head of ETF Investment Strategy at SSgA Americas, in a research note. “However, the team continues to expect major divergences across and within regions to be the norm.”
SSgA, though, expects that the U.S. economy will expand 1.8% this year, a slower-than-anticipated growth due to fiscal tightening.
In Asia, Japan is expected to grow 1.3% this year as the Bank of Japan adopts a 2.0% inflation target and implements aggressive stimulus measures. China is expected to grow 8.2% but could still face structure issues.