U.S. Trust today released its 2013 market outlook, saying while aggressive monetary policy has been the most important catalyst for stabilization and rising asset prices in the past few years, fiscal policy transparency will take the lead in 2013. Combined with a continued easing monetary policy and improving economies both in the U.S. and abroad, this new fiscal policy transparency should help to spark a long-awaited reallocation of capital for both businesses and investors.
"We believe the defining feature of financial markets in 2013 all around the globe will be a transition from this monetary policy-based 'great experiment' into a more business-directed and fiscally transparent period we're calling 'The Big Fix,'" said Chris Hyzy, chief investment officer at U.S. Trust. "The Big Fix is based on a recovering housing market, continued strong corporate profits, increased transparency in fiscal policy and, towards the second half of 2013, a rise in capital expenditures by corporations."
Hyzy established a 2013 target for the S&P Index of 1600 on November 20, 2012, with a price-to-earnings multiple of 14.5 times to 15.0 times and $108 per share in profit.
The launch of the 2013 outlook features online content available at www.ustrust.com/outlook that offers the latest insights from U.S. Trust on key topics such as emerging markets, global investment themes, taxes and implications for investment portfolios.
"Given current and expected fiscal policy changes, managing for after-tax returns will be more important than ever for many investors," said Keith Banks, president at U.S. Trust. "Our client teams include a portfolio manager, trust officer, private client advisor and a wealth strategist as appropriate who work together to customize solutions for our clients. They have tremendous flexibility to address each client's particular concerns - from maximizing investment opportunities to managing family wealth - always in light of our firm's most current and best thinking."
U.S. Trust, Bank of America Private Wealth Management is a leading private wealth management organization providing vast resources and customized solutions to help meet clients' wealth structuring, investment management, banking and credit needs. Clients are served by teams of experienced advisors offering a range of financial services, including investment management, financial and succession planning, philanthropic and specialty asset management, family office services, custom credit solutions, financial administration and family trust stewardship.
U.S. Trust is part of the Global Wealth and Investment Management unit of Bank of America, N.A., which is a global leader in wealth management, private banking and retail brokerage. U.S. Trust employs more than 4,000 professionals and maintains 140 offices in 32 states.
As part of Bank of America, U.S. Trust can provide access to a broad range of banking solutions for individuals and businesses, and an extensive retail banking platform.
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