NAPERVILLE, Illinois and LONDON, July 20, 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 July 2012 Global Economic Review and Outlook at Calamos.com/Outlook. Topics include the following:
- Political volatility stokes market volatility.
We expect politics, from Eurozone negotiations to the U.S. presidential election to transition of leadership in China, to contribute to volatility throughout the global financial markets.
- Emerging markets continue to grow, albeit more slowly.
Emerging markets should continue to contribute to global GDP growth, even if at a slower pace than recent years. Secular trends relating to emerging markets, especially the growth and maturation of the emerging consumer, can continue to provide economic growth opportunities for companies around the world. Additionally, recent reports suggest that China may be in a transition to re-acceleration.
- U.S. stays on a slow-growth track.
Economic data continues to affirm our view that the U.S. would avoid a double-dip recession. Although employment data remains bleak, housing data has improved and consumers are doing the right things to support the economy—deleveraging and spending.
- The Eurozone remains a source of volatility.
We've seen steps toward addressing the Eurozone crisis as more than a liquidity issue. While this is encouraging, far more needs to be done and the road ahead is long, difficult and unclear.
- Ultimately, the pace of growth should correlate with fiscal restraint and expanding economic freedoms.
We expect uneven growth from country to country as some nations adapt more readily than others to evolving sovereign relationships. Sound fiscal policies and expanding economic freedoms, such as fair trade and reasonable regulations, can help countries capitalize on the opportunities of globalization.
- Equities are highly compelling.
Equities remain the most attractive asset class in the current environment, particularly growth equities. Investors remain overly pessimistic about the prospects for growth companies, and we believe many equities are notably undervalued.
- Mid-grade corporate bonds remain attractive.
Even though inflation is low today, history has shown that it can rise rapidly and unexpectedly, a particularly detrimental scenario for holders of longer-term government bonds. Meanwhile, given a slower-growth environment, lower quality corporate bonds may not be providing appropriate compensation for risk. However, we continue to find attractive risk/reward among select mid-grade corporate credits.
- Global businesses provide access to secular growth.
Broadly speaking, global companies with geographically diversified revenues and healthy balance sheets may be best positioned to grow on the back of secular trends, especially those related to emerging markets. Moreover, these companies have the flexibility to go where capital is treated best.
To read Calamos' recent commentaries about related topics, including "Evolving Emerging Market Strategies: A Tactical or Core Component of Your Asset Allocation" please visit Calamos.com/Global/outlook/investment%20insight.
Calamos Investments LLC is the holding company for a group of affiliated investment firms worldwide that have in aggregate $33.4 billion assets under management as of 30 June 2012. The company's clients include public and private pensions, foundations, endowments, corporations, financial advisors, families and individuals from around the world.
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 Investment's affiliated investment firms serve professional/sophisticated investors around the world through Calamos Global Funds PLC (UCITS), distributed by Calamos Investments LLP, London, United Kingdom.
For more information, please visit 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