Russell’s Global CIO sees upturn ahead
Business Examiner Daily 1.21.09
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Russell Investments’ Chief Investment Officer Peter Gunning expects equity markets to signal a mid-year economic turnaround before it’s officially determined by economic statistics. He said that by the time the U.S. recession was officially declared in December, major U.S. stock indexes already showed staggering year-to-date declines.“Russell’s analysis and models point to a slow and perhaps subdued economic recovery starting later in 2009, with the markets likely to recover before the U.S. economy,” said Gunning. “Global economies will recover later than the U.S. economy.” Gunning added that investors who keep market changes in perspective and remain disciplined—in times of recession and prosperity—enhance their long-term ability to achieve financial security.“We are extremely aware that investors are frustrated and fearful, and we share that pain. Stocks worldwide, as measured by the Russell Global Index, lost $17 trillion in value in the 2008 calendar year. Every country, sector and industry showed a negative return for the year,” Gunning said. “It’s a very bad recession, no doubt about it, but every day that we move forward in the markets is one day closer to recovery.”
Gunning expects the drumbeat of negative economic news to continue through the first half of 2009, even as government stimulus initiatives are being executed.
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