|By PR Newswire||
|January 15, 2013 03:00 PM EST||
WILMINGTON, Del., Jan. 15, 2013 /PRNewswire/ -- Wilmington Trust released its annual seven-year Capital Markets Forecast, projecting continued recovery in the U.S. with economic growth at 1.5-2 percent in 2013, and annualized inflation averaging 2 percent through 2019. The report's theme, "dollars, debts, and demographics," examines how central bank stimulus, global debt, and aging populations will reshape the global economy and financial markets.
The forecast, crafted by the Investment Strategy Team at Wilmington Trust Investment Advisors (WTIA), predicts modest returns on stocks over the seven-year span of the outlook. The team is more optimistic about emerging stock markets, value-oriented large-cap stocks in developed international markets, and non-core bonds, such as sovereign debt of emerging economies and speculative-grade corporate bonds.
"Investing is a long-term proposition," said Rex Macey, WTIA's chief investment officer. "While a myriad of competing economic and political forces will perpetuate a tepid recovery over the next few years, there are opportunities for the diligent investor."
DOLLARS, DEBTS, AND DEMOGRAPHICS
The Capital Markets Forecast includes concerns about the ability of world leaders to drain excess liquidity from the global financial system. While only a 2-percent annualized inflation rate is predicted for the U.S. over the seven-year outlook, the "tidal wave of stimulus" issued by central banks continues to boost financial asset valuations, leading to below-average expected returns.
Just as the world is awash in dollars, it is also steeped in debt. The total debt of the United States, including households, for-profit and not-for-profit entities, and all levels of governments, hit $53.1 trillion at the end of the third quarter of 2012, an amount equal to 3.9 years' worth of all goods and services produced domestically. In 1982, national debt amounted to just 49 weeks' worth of U.S. economic output.
The Investment Strategy Team also cites concern over the "graying" of key populations of the global economy. As U.S. Baby Boomers enter retirement and transition from accumulators of savings to consumers of savings. This demographic shift will likely generate headwinds for the markets. In many emerging markets the demographics are more favorable supporting investments in those markets. On the bright side in the U.S., the Echo Boomers will be helping to support the housing market in a few years.
SIX U.S. ECONOMIC SCENARIOS
The forecast also examines six potential scenarios and their potential effect on economic growth:
- Slow growth with normalization
- Slow growth with persistent economic repression
- Global policy success
- Prolonged European / Chinese under-performance
- U.S. policy failure
"In spite of continuing threats to the economy, many economic resources remain in surplus in the U.S. including manufacturing, housing, and labor," said Macey. "Additionally, we see a light at the end of the tunnel. By the end of our forecast horizon in 2019, the U.S. will be ten years removed from the end of the Great Recession, and economic growth and the financial markets should have normalized by that time."
For more detailed analysis and projections, including forecasts and biases for asset classes, Wilmington Trust's 2013-2019 Capital Markets Forecast commentary is available online at www.wilmingtontrust.com/repositories/wtc_sitecontent/PDF/Capital_Markets_Forecast_2013_2019_commentary.pdf.
ABOUT WILMINGTON TRUST INVESTMENT ADVISORS
Wilmington Trust Investment Advisors provides clients with access to quality investment advisory and asset management expertise including equity, fixed income, and alternative strategies. WTIA had over $19.7 billion of assets under management as of Sept. 30, 2012, and it also oversees the investment processes of Wilmington Trust and M&T Bank, which had $40.8 billion of assets under management as of Sept. 30, 2012.
ABOUT THE INVESTMENT STRATEGY TEAM
WTIA's Investment Strategy Team undertakes a multi-year forecast of financial market performance annually. The IST analyzes valuations and global economic scenarios to develop its forecast for longer-term market performance, as well as shorter-term trends in securities prices. The IST aims to deliver higher-than-benchmark total returns for investors based on varying appetites for risk. The forecast underscores the importance of diversification among a variety of asset classes.
ABOUT WILMINGTON TRUST
Wilmington Trust's Wealth Advisory offers a comprehensive array of personal trust, financial planning, fiduciary, asset management, and family office services that help high-net-worth individuals and families grow, preserve, and transfer wealth. Wealth Advisory maintains offices throughout the United States and focuses on serving families with whom it can build long-term relationships, many of which span multiple generations.
Wilmington Trust's Institutional Client Services (ICS) offers institutional trustee, agency, asset management, retirement plan, and administrative services for clients worldwide who use capital markets financing structures, as well as those who seek to establish or maintain nexus, or legal residency for special purpose entities. ICS is distinguished from many competitors by its status as a core business of Wilmington Trust, as well as the experience and expertise of its global staff, and its multi-jurisdictional presence.
Wilmington Trust has offices throughout the United States and internationally in London, Luxembourg, Frankfurt, Dublin, Amsterdam, Cayman Islands, and Channel Islands. Wilmington Trust is an M&T company. For more information, visit www.WilmingtonTrust.com.
Media Contact: Kent Wissinger, Communication Manager (302)651-8758
SOURCE Wilmington Trust
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Dec. 1, 2015 06:30 AM EST Reads: 513
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
Dec. 1, 2015 05:00 AM EST Reads: 620
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
Dec. 1, 2015 05:00 AM EST Reads: 359
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk was on IBM Cloudant, Apache CouchDB, and ...
Dec. 1, 2015 04:45 AM EST Reads: 458
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Dec. 1, 2015 03:00 AM EST Reads: 470
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
Dec. 1, 2015 03:00 AM EST Reads: 469
Most of the IoT Gateway scenarios involve collecting data from machines/processing and pushing data upstream to cloud for further analytics. The gateway hardware varies from Raspberry Pi to Industrial PCs. The document states the process of allowing deploying polyglot data pipelining software with the clear notion of supporting immutability. In his session at @ThingsExpo, Shashank Jain, a development architect for SAP Labs, discussed the objective, which is to automate the IoT deployment process from development to production scenarios using Docker containers.
Dec. 1, 2015 01:15 AM EST Reads: 125
Countless business models have spawned from the IaaS industry – resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his general session at 17th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, an IBM Company, broke down what we have to work with, discussed the benefits and pitfalls and how we can best use them to design hosted applications.
Nov. 30, 2015 03:45 PM EST Reads: 115
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 30, 2015 03:15 PM EST Reads: 250
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Nov. 30, 2015 03:00 PM EST Reads: 496
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 30, 2015 02:00 PM EST Reads: 375
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
Nov. 30, 2015 01:45 PM EST Reads: 439
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
Nov. 30, 2015 01:45 PM EST Reads: 441
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 30, 2015 01:00 PM EST Reads: 542
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 30, 2015 12:45 PM EST Reads: 346
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Nov. 30, 2015 10:45 AM EST Reads: 468
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
Nov. 30, 2015 10:30 AM EST Reads: 361
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
Nov. 30, 2015 10:00 AM EST Reads: 304
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Nov. 30, 2015 09:00 AM EST Reads: 513
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Nov. 30, 2015 08:00 AM EST Reads: 574