Calamos Releases Quarterly Global Economic Review and Outlook April 2012
NAPERVILLE, Ill. and LONDON, April 11, 2012 /PRNewswire/ -- Calamos Investments, a global investment management firm, released its Global Economic Review and Outlook. Calamos' Co-Chief Investment Officers, John P. Calamos, Sr. and Nick P. Calamos provide their views on the current economic environment and discuss factors which may affect the global markets and investing opportunities and risks. Calamos invites you to read the entire April 2012 Global Economic Review and Outlook titled "All Debt Gets Repaid with Someone's Equity" at Calamos.com/Outlook. Topics include the following:
> >Coordinated reflation has provided a welcomed boost, but cannot sustain global growth. Historically, when liquidity has waned, equity markets faltered and economies weakened.
> >A mild recovery and low growth for the U.S. For the foreseeable future, the U.S. economy will have good quarters followed by weak ones. We expect real U.S. GDP growth of around 2% until the debt reduction cycle plays out further around the world.
> >Emerging markets can't do it alone. Until the major world economies reach more reasonable debt levels, global economic growth will likely be below the historic average. Currency wars and trade protectionism must be held in check to allow for the competition that fuels innovation and growth.
> >A bull market, eventually. The developed world's fiscal and financial situation can be reversed and a new bull market will occur again. A secular bull market requires a few more years of debt reduction, normalization of rates or at least the likelihood of normal rates, fiscal solutions to developed world deficit spending and the creation of a pro-growth, pro-business environment.
> >Equities are the most attractive asset class. We believe equities are the most compelling asset class over the next five or so years, although performance will be more measured than the bull market returns of the 1980s and 1990s.
> >Emerging markets are driving global growth. The growth of a middle class is an exciting world-changing trend, as this group provides an increasingly prosperous customer base for global companies.
> >Growth equities are undervalued, globally. Our valuation model shows that growth is at a discount around the world. Major global markets have median valuations based on free cash flow that are one standard deviation below their long-term averages, which indicates to us better-than-average return prospects. However, the backdrop of likely higher rates and debt deleveraging may hold off the valuation premium in the foreseeable future.
> >Diversified global businesses will lead. Going forward, global businesses with global access to capital, global distribution networks, global marketing and production should command premium business valuations. Information technology companies are among those that are particularly well positioned as business productivity will be an even more important competitive advantage globally.
Calamos Investments is a globally diversified investment firm serving the needs of institutional and individual investors for over 30 years. The company's clients include public and private pensions, foundations, endowments, corporations, financial advisors, family offices and individuals from around the world who have entrusted the firm with $36.1 billion in assets under management as of 29 February 2012.
Calamos offers a range of global investment solutions - equity, fixed-income, convertible and alternatives - to work with clients' multi-asset allocation frameworks and achieve the goals of their investment programs.
Calamos serves professional/sophisticated investors around the world through Calamos Global Funds PLC (UCITS), distributed by Calamos International LLP, London, United Kingdom.
For more information, please visit www.calamos.com.
This material is distributed for informational purposes only.
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.
SOURCE Calamos Advisors LLC