Aberdeen Asset Management White Paper: A Series of Unfortunate Events for Global Markets

Nov 07, 2011, 13:34 ET from Aberdeen Asset Management

PHILADELPHIA, Nov. 7, 2011 /PRNewswire/ -- Aberdeen Asset Management has today published a white paper entitled A Series of Unfortunate Events for Global Markets. The paper delivers insights from Aberdeen investment managers and strategists as well as external experts from the world of economics and finance. Contributors were asked to give commentary on a range of global market issues ahead of the firm's annual Investment Conference, which will be held at the Savoy Hotel on Tuesday, November 8th.

Martin Fluck, Investment Strategist at Aberdeen, comments: "Ahead of this year's Aberdeen Asset Management Investment Conference we decided to commission a series of interviews with think tanks, commentators and economists to discuss the major themes which will affect the world in the coming year. Our big themes include the West's debt problems, China bubbles, American surprises and the euro-zone. This white paper is the consequence of those interviews and presents a thought leadership angle on a diverse range of topics."

Contributors to the white paper include Douglas Elliot, Fellow of the Brookings Institution, Dr Jim Walker, Founder and Managing Director of Asianomics Limited, Graham Bishop, Independent analyst, and Chris Watling, founder of LongView Economics.

The paper includes four essays which present the experts' opinions on topics as diverse as a Chinese 'hard landing' and the potential of the European community to "give up" on the single currency. Not afraid to voice real concerns of economists, the paper gives a frank discussion of the main drivers of the crises we are seeing.

Dr Jim Walker is quoted as saying of the euro-zone: "The fact is that the euro-zone is an inappropriate currency regime and is made up of far too many members that are uncompetitive at the current exchange rate. Unless the Greeks et al are willing to suffer endless austerity, depression, and political instability, there really is no alternative to at least a partial break-up."

In a discussion on US economic growth, Chris Watling, says: "You get recessions when companies are overstretched and monetary policy is tightened, he says. In fact in the US, monetary policy is loose, companies have lots of cash. It's basically not a recessionary environment, and there won't be a 'double-dip recession, unless we get the disaster scenario in Europe."

Doug Elliot says of China: "To restore confidence and halt the slide in their share price -- which are now valued in line with their euro-zone peers -- the authorities are propping up the banks. But this will be the first of many such interventions because the indiscriminate stimulus will leave mountains of non-performing loans."

The white paper is positive about an eventual rally in the US stock market, likewise for a euro-zone, post-euro, but remains concerned about the impact of deleveraging in the West and China's asset bubbles. Copies of the whitepaper are available by visiting the News & Announcements section on www.aberdeen-asset.us.

For more information about the Aberdeen Investment Conference and to register to listen live online to the speeches and panel sessions www.aberdeen-asset.com/conference2011

About Aberdeen

Aberdeen Asset Management PLC is a pure asset management group, which has been listed on the London Stock Exchange since 1991. The Company was originally founded in Aberdeen, Scotland in 1983, through management buyout. The Group has 30 offices and over 1,800 staff located around the world. Aberdeen invests worldwide on behalf of clients globally across the four major asset classes of equities, fixed income, and alternatives. Today the Company has assets under management of over 176 billion pounds Sterling as of August 31, 2011.

Aberdeen Asset Management ("AAM") is the marketing name in the U.S. for the following affiliated, registered investment advisers: Aberdeen Asset Management Inc, Aberdeen Asset Management Investment Services Ltd, Aberdeen Asset Management Ltd and Aberdeen Asset Management Asia Ltd (collectively, the "Aberdeen Advisers"). Each of the Aberdeen Advisers is wholly owned by Aberdeen Asset Management PLC. "Aberdeen" is a U.S. registered service mark of Aberdeen Asset Management PLC.

The above is for information purposes only and should not be considered as an offer, or solicitation, to deal in any of the investments mentioned herein. AAM does not warrant the accuracy, adequacy or completeness of the information and materials contained in this document and expressly disclaims liability for errors or omissions in such information and materials.

This material contains the opinions of the featured investment professionals, but not necessarily those of Aberdeen Asset Management Inc. and such opinions are subject to change without notice.  Some of the information in this document may contain projections or other forward looking statements regarding future events or future financial performance of countries, markets or companies. These statements are only predictions and actual events or results may differ materially. The reader must make his/her own assessment of the relevance, accuracy and adequacy of the information contained in this document and make such independent investigations, as he/she may consider necessary or appropriate for the purpose of such assessment.

Any opinion or estimate contained in this document is made on a general basis and is not to be relied on by the reader as advice.

Neither AAM nor any of its agents have given any consideration to nor have they made any investigation of the investment objectives, financial situation or particular need of the reader, any specific person or group of persons. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader, any person or group of persons acting on any information, opinion or estimate contained in this document.  AAM reserves the right to make changes and corrections to its opinions expressed in this document at any time, without notice.

SOURCE Aberdeen Asset Management