Saxo Bank Q4 Outlook 2012: Mandate for Change
HELLERUP, Denmark, October 9, 2012 /PRNewswire/ --
Increased focus on micro is needed to end the recession
Saxo Bank, the online multi-asset trading and investment specialist, launches today its Q4 Outlook for 2012. The Outlook report concludes that the policies of the central banks and governments to date fail to have a positive effect, and calls for a mandate for change to pull us out of the recession indefinitely.
The Q4 report also analyses the limited impact of repeated policies that include QE and low interest rates, and says that the focus should be on micro policies instead. Macro has so far failed, which can be seen in the record EU unemployment rates of 11.2% and negative growth of 0.5% in Europe.
The Q4 report shows that despite this uncertainty in the market there are still opportunities for investors. Small companies with good growth prospects present a good opportunity for investors and many have already expanded during the financial crisis.
Moreover, Saxo Bank views the Chinese market as the 'real game changer'. China has experienced rapid growth for many years, but its business model is outdated. For China to become an industrialised nation, it must make steps towards encouraging intellectual investment and allowing competition to achieve a deep financial market.
Steen Jakobsen, Chief Economist at Saxo Bank commented: "The continued policy repetition by our governments and central banks has extended the recession in developed countries, and we predict a subdued economic growth for the foreseeable future. Policy makers must begin to focus on the micro factors. Social tension is not only occurring in the more problematic countries such as Spain, Greece and Portugal, but is beginning to become visible in countries such as Germany. We have reached a low point of growth and unless we can break the cycle of denial and protest as currently upheld by policy-makers, it will persist into 2013 and possibly beyond."
The full Q4 2012 Outlook includes the following analyses:
- Q4 Outlook overview: Groundhog day
- Equity Outlook: Go small cap for large returns
- FX Outlook: Market nerves will finally lead to volatility expansion
- Monetary Policy: Major central banks
- Feature: Japanisation of the global economy
- Asia: Who follows Hu?
- Commodity Outlook: Weak fundamentals create headwinds
About Saxo Bank
Saxo Bank is an online trading and investment specialist, offering private investors and institutional clients a complete set of tools for their trading and investment strategies. A fully licensed and regulated European bank, Saxo Bank enables clients to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives via three specialised and fully integrated multi-asset trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application. The platforms are available in over 20 languages and are white-labelled by more than 100 major financial institutions worldwide. Saxo Bank also offers professional portfolio and fund management as well as traditional banking services through Saxo Privatbank. Founded in 1992, the Saxo Bank Group is headquartered in Copenhagen with 24 local offices throughout Europe, Asia, Middle East, Latin America and Australia.
SOURCE Saxo Bank