January 06, 2010

Prudential experts cautiously optimistic about 2010

2010 Global Economic and Retirement Market OutlookPrudential Financial experts said Tuesday they are cautiously optimistic for sustained economic growth in 2010 as global markets continue a gradual rebound from the financial crisis.

Speaking at Prudential’s “2010 Global Economic and Retirement Market Outlook” in New York City, Ed Keon, a portfolio manager with Prudential’s Quantitative Management Associates, said while there are encouraging signs for growth, investors should expect market volatility throughout the “turbulent teens ahead.”

In addition to Keon, panelists included Dr. Quincy Krosby, chief market strategist for Prudential Annuities; Robert Tipp, chief investment strategist for Prudential Fixed Income Management; Jamie Kalamarides, vice president of Retirement Solutions; and Dr. John Praveen, chief investment strategist of Prudential International Investments Advisers.

The panelists cautioned the market recovery will be more gradual compared to the rapid rebounds from past recessions.

Krosby said GDP growth in the United States “is not going to be 8 percent, the normal recovery that you have coming from a deep recession—it will be much more muted.”

Krosby described a “tug of war” among economic factors that affect market performance. “Most of us don’t realize the fact that the market can go one way and the economy goes another way,” she said. “Bull markets are born on bad news and they die on good news.”

Keon said he sees more upside opportunity than downside risk in the U.S. market, but he’s still “nervously bullish” about the economy. A key to economic growth in 2010 will be an upturn in the labor market, he said.

Interested in more information? You can watch a replay of the event, hear presentations from each of the panelists and read their outlooks.