HARTFORD, Conn., July 21, 2011 /PRNewswire/ -- Joe Terranova, chief market strategist at Virtus Investment Partners, believes four potential "heroes" could rescue the capital markets in the second half of the year. In his quarterly market commentary, Terranova does not foresee a third round of quantitative easing (QE3) by the Federal Reserve; rather, he is optimistic for the prospects presented by:
- Manufacturing – Recent increases in Japanese industrial production appear to have reversed global supply disruptions caused by the March earthquake, and surprise increases in U.S. manufacturing indices also support Terranova's expectation that growth will accelerate in the second half.
- Corporate earnings – Foreign sales, helped by the weaker U.S. dollar, have contributed to strong U.S. corporate growth, and equity valuations of many consumer discretionary companies recently hit new 52-week highs. Terranova anticipates an increase in IT enterprise spending in the second half, which should boost sales and profitability of tech companies.
- U.S. fiscal policy – In the absence of further monetary policy such as QE3, some type of fiscal policy will likely be a second-half hero. Among the candidates: an extension of the employee payroll tax cut or a new employer-side payroll tax cut; a repatriation holiday, giving U.S. companies a tax break on profits held overseas; or a deficit-reduction agreement from Capitol Hill.
- China – For the remainder of 2011, Terranova expects no further rate hikes from China's central bank, continued modest appreciation of the yuan currency but at a slower pace, and a reacceleration of China's contribution to global growth in the fall.
(Logo: http://photos.prnewswire.com/prnh/20090105/NEM020LOGO )
Terranova's commentary also provides insights into his view on global currencies, the European debt crisis, gold, energy, and oil, along with his expectations for sectors that could outperform in the second half.
A regular panelist on CNBC's Fast Money, Terranova offers his latest views on market events in both his blog and monthly calendar of key economic indicators at www.virtus.com.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. Additional information can be found at www.virtus.com.
Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed, and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.
SOURCE Virtus Investment Partners, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article